CONSUMPTION RATIOS Rico Company produces two types of boots: cowboy and cowgirl. There are four activities associated with the two products. Drivers for the four activities are as follows:

Cowboy Cowgirl Cutting hours 1,400 2,600 Assembly hours 1,000 1,500 Inspection hours 450 1,050 Rework hours 50 150 Required:

. Calculate the consumption ratios for the four drivers.

. Is there evidence of product diversity? Explain.

Cornerstone Exercise