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Consumption Ratios Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the
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 2,030 5,400 Assembly hours 2,850 4,650 Inspection hours 900 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 0.27 0.73 Assembly hours 0.38 0.62 Inspection hours 0.27 0.73 Rework hours 0.25 0.75 2. Is there evidence of product diversity? Explain. Yes, the variation in the consumption ratios show the product diversity. Previous Next
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