Bienestar Company produces two types of get-well cards: scented and regular. Drivers for the four activities are as follows: The following activity data have been collected: 1. Calculate the activity rate for the plastic injection molding activity (round to two decimal places). 2. Calculate the activity rate for the decal application activity (round to two decimal places). Required: 1. Calculate the consumption ratios for the four drivers (round to two decimal places). 2. CONCEPTUAL CONNECTION Is there evidence of product diversity? Explain the significance of product diversity for decision-making if the company chooses to use machine hours to assign all overhead. 3. Calculate the activity rates that would be used to assign costs to each product (round to two decimal places). 4. Suppose that the budget for inspection is $50,000 for the coming year and that the activity rate for inspecting products is $25 per inspection hour. How many hours of inspection are expected for the coming year? Exercise 5-39 Activity Rates Objective 2 Patten Company uses activity-based costing (ABC). Patten manufactures toy cars using two activities: plastic injection molding and decal application. Patten's 20X1 total budgeted overhead costs for these two activities are $675,000 ( 80% for injection molding and 20% for decal application). Molding overhead costs are driven by the number of pounds of plastic that are molded together. Decal application overhead costs are driven by the number of decals applied to toys. The budgeted activity data for 20X1 are as follows