Gladmark Company produces two types of get-well cards: scented and regular. Drivers for the four activities are as follows:

The following activity data have been collected:
Inspecting products ....$3,000
Setting up equipment ....3,750
Machining .........6,000
Moving materials .......1,350

Required:
1. Calculate the consumption ratios for the four drivers.
2. Is there evidence of product diversity? Explain.
3. Calculate the activity rates that would be used to assign costs to each product.
4. Suppose that the activity rate for inspecting products is $20 per inspection hour.
How many hours of inspection are expected for the comingyear?

Transcribed Image Text:

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