Consumption Ratios Larsen, Inc., produces two types of electronic parts and has provided the following data: Part 12 Part YK7 Total Units produced 100,000 600,000 Direct labor hours 40,000 60,000 100,000 Machine hours 56,000 294,000 350,000 Number of setups 36 84 120 Testing hours 1,100 8,900 10,000 4,000 Number of purchase orders 560 3,440 There are four activities: machining, setting up, testing, and purchasing. Required: 1. Calculate the activity consumption ratios for each product. Round your answers to two decimal places. Consumption Ratios Overhead Activity Part X12 Part YK7 Activity Driver Machining Setups Inspecting products Purchasing 2. Calculate the consumption ratios for the plantwide rate (direct labor hours). Round your answers to two decimal places. Consumption Ratios Overhead Activity Part x12 Part YK7 Plantwide: Manufacturing Which product is undercosted? 3. If the machine hours were used for the plantwide rate, would this remove the cost distortion of a plantwide rate? Activity Driver Machine hours Number of setups Purchase orders Testing hours Terra ind