Consumption Ratios Larsen, Inc., produces two types of electronic parts and has provided the following data: Part X12 Part YK7 Total Units produced Direct labor hours 100,000 600,000 40,000 60,000 100,000 Machine hours Number of setups 56,000 294,000 350,000 48 72 120 Testing hours 1,000 9,000 10,000 Number of purchase orders 560 3,440 4,000 < 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 Machining Setups Inspecting products Purchasing Part YK7 Activity Driver 2. Calculate the consumption ratios for the plantwide rate (direct labor hours). Round your answers to two decimal places. Overhead Activity Plantwide: Manufacturing Which product is undercosted? Consumption Ratios Part X12 Part YK7 3. If the machine hours were used for the plantwide rate, would this remove the cost distortion of a plantwide rate?