Calculate the consumption ratios for the four drivers

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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

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