Consumption Ratios

Botas Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows:

	Vaquero	Vaquera
Cutting hours	2,400			3,600
Assembly hours	1,425			2,325
Inspection hours	630			1,620
Rework hours	75			225

Required:

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

Activity Driver	Vaquero	Vaquera
Cutting hours
Assembly hours
Inspection hours
Rework hours

2. Is there evidence of product diversity?

• Yes
• No