Question
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
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:
Line Item Description | Vaquero | Vaquera |
---|---|---|
Cutting hours | 2,050 | 5,400 |
Assembly hours | 2,850 | 4,650 |
Inspection hours | 990 | 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 | fill in the blank 1 | fill in the blank 2 |
Assembly hours | fill in the blank 3 | fill in the blank 4 |
Inspection hours | fill in the blank 5 | fill in the blank 6 |
Rework hours | fill in the blank 7 | fill in the blank 8 |
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.Yes, the variation in the consumption ratios show the product diversity.
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