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 130 90 Setup hours 90 30 Machine hours 180 570 Number of moves 220 75 The following activity data has been collected: Inspecting products $5,100 Setting up equipment 4,789 Machining 6,300 Moving materials 1,310 Required: 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places. Scented Cards Regular Cards Inspection hours 130 X 90 Setup hours 90 X 30 X Machine hours 180 X 570 X Number of moves 220 X 75 X 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 assion all overhead Check My Work 9 more Check My Work uses remaining 75 x Number of moves 220 x 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 it the company chooses to use machine hours to asign all overhead If machine hours are used as the only driver, scented cards would receive 24% of the overhead, and regular X cards would receive 70% of the overhead. Yet, the scented cards consume well over 39% of the non-machine related evahend. Thus, the Scented cards are widercented me the Hegular andere verted 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 wsion costs to each product. Round your answers to the nearest.com Rates: Inspecting products per inspection hour Setting up equipment per setup hour Machining per machine hour Moving materials 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 conving your required, round your une nearest whole number of hours. inspection hours Feedback Check My Work The consumption ratio is the percentage of time spent per product on each activity. Product 1 Consumption Ratio: Product 1 hours (activity 1)/(Product 1 hours (activity 1) + Product 2 hours (activity 1)) Determine the cost per activity by dividing the cost data per activity by the total number of hours per activity NE