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. 110 60

Setup hours. 60 10

Machine hours. 190 610

Number of moves. 215 70

The following activity data has been collected:

Inspecting products. $5,050

Setting up equipment. 4,770

Machining. 6,390

Moving materials. 1,410

Required:

1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places.

Scented Cards. Regular Cards

Inspection hours ___________. ________

Setup hours. ____________. ________

Machine hours. ___________. _________

Number of moves. ___________. ________

3. Calculate the activity rates that would be used to assign costs to each product. Round your answers to the nearest cent.

Rates: fill in blank

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