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 80 Setup hours 80 20 Machine hours 160 580 Number of moves 215 75 The following activity data has been collected: Inspecting products $5,040 Setting up equipment 4,820 Machining 6,410 Moving materials 1,400 Required: 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places. 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places. Scented Cards Regular Cards Inspection hours 38.77 38.1 Setup hours 80 x Machine hours 21.62 x Number of moves 74.14 x 2. Which of the following statements indicate there is product diversity? Significant variation in the activities involved in production. X 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 22% of the overhead, and regular cards w 78% of the overhead. Yet, the scented cards consume well over 62% of the non-machine related overhead. Thus, the Scented a undercosted , and the Regular cards are overcosted This inaccuracy can adversely affect many decisions, including 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 per inspection hour Setting up equipment $ per setup hour 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 coming year? If required, round your answer to nearest whole number of hours. inspection hours