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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
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 2,400 1,425 630 Vaquera 3,600 2,325 1,620 225 Cutting hours Assembly hours Inspection hours Rework hours Required: 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places Activity Driver Cutting hours Assembly hours Inspection hours Rework hours 2. Is there evidence of product diversity? 75 Vaquero Vaquera Activity Rates 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 2,400 1,425 630 Vaquera 3,600 2,325 1,620 225 Cutting hours Assembly hours Inspection hours Rework hours The following activity data have been collected Cutting Assembling Inspecting Reworking Required: Calculate the activity rates that would be used to assign costs to each product. Cutting Assembling Inspecting Reworking 75 $150,000 187,500 45,000 22,500 per cutting hour per assembling hour per inspecting hour per reworking hour
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