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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 120 Setup hours 80 Machine hours 190 Number of moves 240 The following activity data has been collected: $4,970 Inspecting products Setting up equipment 4,810 Machining 6,410 Moving materials 1,400 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 2. Which of the following statements indicate there is product diversity? me or moves 2. Which of the following statements indicate there is product diversity? Significant variation in the consumption ratios from driver to driver. Explain the significance of product diversity for decision making if the company chooses to use machine hours to assign all overhead. If machine hours are used as the only driver, scented cards would receive 24% of the overhead, and regular cards would receive 76% of the overhead. the scented cards consume well over 60% of the non-machine related overhead. Thus, the Scented cards are undercested and the Regular cards are overcosted This Inaccuracy can adversely affect many decisions, including pricing, Keup or drop, and cost-volume-profit. 3. Calculate the activity rates that would be used to assign costs to each product. Round your answers to the nearest cent. Rates: Inspecting products Setting up equipment per inspection hour per setup hour Machining per machine hour Moving materials per move S e e that the activity rate for inspecting products is 20 perspection hour. How many hours of inspection are expected for the coming year? If required, round your answer to nearest whole number of hours Inspection hours