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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: Regular

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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: Regular Cards Inspection hours Setup hours Machine hours Number of moves Scented Cards 110 70 20 30 180 550 240 70 The following activity data has been collected: Inspecting products Setting up equipment Machining $4,910 4,670 6,420 1,440 Moving materials Required: 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places Inspection hours Setup hours Scented Cards Regular Cards Machine hours Number of moves 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 at overhead. If machine hours are used as the only drives C cards would receive 25% of the overhead, and, and the Regular cards are cards would receive 75% of the overhead. Yet, the cards This inaccuracy can adversely affect many decisions, consume well over 61% of the non-machine related overhead. Thus, the Scented cards are 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: Next

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