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 Setup hours Machine hours Number of moves 140 80 80 30 190 630 240 65 The following activity data has been collected: Inspecting products Setting up equipment Machining $4,960 4,820 6,310 1,400 Moving materials Required: 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places. Inspection hours Setup hours Machine hours Number of moves Scented Cards Regular Cards 2. Which of the following statements indicate there is product diversity? 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, overhead. Yet, the Regular cards are cards would receive 23% of the overhead, and ( cards would receive 77% of the , and the cards consume well over 64% of the non-machine related overhead. Thus, the Scented cards are ( This Inaccuracy can adversely affect many decisions, including pricing, keep 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 Machining Moving materials per inspection hour per setup hour. per machine hour per move 4. Suppose that the activity rate for inspecting products is $20 per inspection 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