11)

Ruby Faces, Inc., has done a cost analysis for the production of reflectors in its factory. The following activities and cost drivers have been developed:

Activity Cost Formula

Maintenance $10,000 + $3 per machine hour

Machining $40,000 + $2 per machine hour

Inspection $70,000 + $550 per batch

Setups $2,000 per batch

Purchasing $30,000 + $20 per purchase order

What is the machining cost for production of 60,000 reflectors that will require 6,000 machine hours, 20 batches, and 15,000 purchase orders?

(0.5pts)

$40,000

$52,000

$38,000

$60,500