Consumption Ratios; Activity Rates Saludable Company produces two types of get-well cards: scented and regular. Drivers...

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Consumption Ratios; Activity Rates Saludable Company produces two types of get-well cards: scented and regular. Drivers for the four activities are as follows: Scented Cards Regular Cards Inspection hours Setup hours Required: Machine hours: Number of moves The following activity data has been collected: Inspecting products Setting up equipment Machining Moving materials 110 Inspection hours Setup hours Machine hours Number of moves 100 PO CHIL 2 200 210 $5,070 4,750 6,460 1,420 100 30 580 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places. Scented Cards. Regular Cards 70 Inspection hours Setup hours Machine hours Scented Cards Regular Cards Number of moves 2. Which of the following statements indicate there is product diversity? Rates: Inspecting products Setting up equipment Explain the significance of product diversity for decision making if the company chooses to use machine hours to assign all overhead. cards would receive 26% of the overhead, and i If machine hours are used as the only driver, the overhead. Yet, the cards consume well over 52% of the non-machine related overhead. Thus, the Scented cards are l and the Regular rds are i This inaccuracy can adversely affect many decisions, including pricing, keep or drop, and cost-volume-profit. 3. Calculate the activity rates that would be used to assign costs to each product. Round your answers to the nearest cent. per inspection hour per setup hour per machine hour cards would receive 74% of Machining Moving materials 4. Suppose that the activity rate for inspecting products is $20 per inspection hour, How many hours of inspection are expected for the coming year? If required, round your answer to nearest whole number of hours. inspection hours per move Consumption Ratios; Activity Rates Saludable Company produces two types of get-well cards: scented and regular. Drivers for the four activities are as follows: Scented Cards Regular Cards Inspection hours Setup hours Required: Machine hours: Number of moves The following activity data has been collected: Inspecting products Setting up equipment Machining Moving materials 110 Inspection hours Setup hours Machine hours Number of moves 100 PO CHIL 2 200 210 $5,070 4,750 6,460 1,420 100 30 580 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places. Scented Cards. Regular Cards 70 Inspection hours Setup hours Machine hours Scented Cards Regular Cards Number of moves 2. Which of the following statements indicate there is product diversity? Rates: Inspecting products Setting up equipment Explain the significance of product diversity for decision making if the company chooses to use machine hours to assign all overhead. cards would receive 26% of the overhead, and i If machine hours are used as the only driver, the overhead. Yet, the cards consume well over 52% of the non-machine related overhead. Thus, the Scented cards are l and the Regular rds are i This inaccuracy can adversely affect many decisions, including pricing, keep or drop, and cost-volume-profit. 3. Calculate the activity rates that would be used to assign costs to each product. Round your answers to the nearest cent. per inspection hour per setup hour per machine hour cards would receive 74% of Machining Moving materials 4. Suppose that the activity rate for inspecting products is $20 per inspection hour, How many hours of inspection are expected for the coming year? If required, round your answer to nearest whole number of hours. inspection hours per move

Answer rating: 100% (QA)

1 Calculation of consumption ratio for the four drivers Cost drivers Scented cards Regular cards Inspection hoursa 052 048 Setup hoursb 077 023 Machin... View the full answer