Refer to Exercise 4.21.
In Exercise 4.21

Required:
1. Calculate the global consumption ratios for the two products.
2. Using the activity consumption ratios for number of orders and number of setups, show that the same cost assignment can be achieved using these two drivers as that of the complete, four-driver ABC system.

Transcribed Image Text:

Model X Model Y Units completed Number of setups Number of orders Machine hours Receiving hours 5,000 100 300 6,000 375 10,000 50 600 4,500 875