Calculate the consumption ratios for the four drivers

Reference no: EM13987520

1. Welstar Company produces two types of get-well cards: scented and regular. Drivers for four activities are given below:

	Scented Cards	Regular Cards
Inspection hours	40	160
Setup hours	50	50
Machine hours	200	600
Number of moves	225	75

Required

1. Calculate the consumption ratios for the four drivers.

2. Is there evidence of product diversity? Explain.

2. The following activity data have been collected:

	Inspecting products	$2,000
	Setting up equipment	2,500
	Machining	4,000
	Moving materials	900

Required

1. Calculate the activity rates that would be used to assign costs to each product.

2. Suppose that the activity rate for inspecting products is $20 per inspection hour. How many hours of inspection are expected for the coming year?

Reference no: EM13987520

Questions Cloud

Estimate the output in each mine after ten years : Four gold mines in a mountainous region have been in continuous operation for five years. The output is measured in tons, and it has been declining each year in each mine. Estimate the output in each mine after ten years

Centralized and decentralized decision making : 1. Discuss the differences between centralized and decentralized decision making. 2. What is decentralization? 3. Explain why firms choose to decentralize.

Problem regarding the transfer pricing : The Components Division produces a part that is used by the Goods Division. The cost of manufacturing the part follows:

How do these areas interact with one another as a group : Define the process groups and knowledge areas included in the portfolio management process and explain what happens in each area. How do these areas interact with one another as a group?

Calculate the consumption ratios for the four drivers : 1. Calculate the consumption ratios for the four drivers. 2. Is there evidence of product diversity? Explain. 2. The following activity data have been collected:

Prepare normal costing journal entries : Workers accumulated 400 hours of labor including 50 hours over overtime. 300 of the 400 hours were traced to particular jobs. The wage rate is $20 per hour.

Calculate the annual break-even point in unit sales and in : The Fashion Shoe Company operates a chain of women's shoe shops that carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a substantial commission on each pair of shoes sold in order to encourage them ..

Problem regarding the machining and inspection : Calculate predetermined overhead rates for the two activities, machining and inspection. Suppose a job used 4,000 machine hours and 800 inspection hours. If the job size is 8,000 units, what is the overhead cost per unit?

What is the power output of the battery : A battery with potential of 1.50 V is in a circuit with 9.7 milliamps flowing. What is the power output of the battery?

User Account

All Pages