Question

CLOUD Show Me How Calculator Consumption Ratios; Activity Rates Saludable Company produces two types of get-well cards: scented and regular. Drivers for the four activities are as follows: Scented Cards Regular Cards Inspection hours 100 140 100 Setup hours Machine hours Number of moves The following activity data has been collected: Inspecting products $5,090 Setting up equipment 4,730 Machining 6,330 Moving materials 1,320 Required: 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places. Scented Cards Regular Cards Inspection hours Setup hours Machine hours Number of moves 0.30 2. Which of the following statements indicate there is product diversity?

Answer 1

1) Consumption Hours will be calculated as under:

Inspection hours	0.58	0.42
Setup hours	0.91	0.09
Machine Hours	0.21	0.79
No. of moves	0.77	0.23

3) Activity Rates

Activities	Activity Rate ($)
Inspecting products	21.21
Setting up equipment	43.00
Machining	8.33
Moving material	4.40

4) No. of inspection hours = Total Inspecting costs/Inspection rate per hour = 5090/20 = 254.5 hours or 255 hours

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Explanation

1) Consumption ratios will be calculated as drivers utilized by a particular product divided by the total of respective drivers utilized by all products

Consumption Ratios
Inspection hours	=140/(140+100)	=100/(140+100)
Setup hours	=100/(100+10)	=10/(100+10)
Machine Hours	=160/(160+600)	=600/(160+600)
No. of moves	=230/(230+70)	=70/(230+70)

2) Question 2 is not clearly visible. please share it with options available and we should surely be able to answer it for you.

3) Activity Rates are calculated by dividing total activity cost by the respective total of drivers driving the cost

1006 1007 Activities 1008 Inspecting products 1009 Setting up equipment 1010 Machining 1011 Moving material Total Cost Total of Activity Driver Activity Rate 5090 =140+100 =B1008/C1008 4730 =100+10 =B1009/C1009 6330 =160+600 =B1010/C1010 1320 =230+70 =B1011/C1011