Consumption Ratios

Zapato 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	2,010		5,400
Assembly hours	2,850		4,650
Inspection hours	940		2,430
Rework hours	150		450

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? Explain.

Yes, the variation in the consumption ratios show the product diversity.

Yes, the variation in the inspection hours show the product diversity.

No, the variation in the consumption ratio is too narrow, there is no product diversity.