Consumption Ratios

Cinturas Company produces two types of men's shirts: casual and formal. There are four activities associated with the two products. Drivers for the four activities are as follows:

Casual Formal

Cutting hours 12,000 18,000

Sewing hours 3,000 7,000

Inspection hours 2,000 4,000

Rework hours 400 600

Required:

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

Activity Driver Casual Formal

Cutting hours

Assembly hours

Inspection hours

Rework hours

2.Is there evidence of product diversity? Explain.