Refer to the information for Cinturas Company given above.

Cinturas Company produces two types of men's shirts: casual and formal. There are four activities associated with the two products. Drivers for the four activities are as follows:

Casual Formal

Cutting hours...........12,000......................18,000

Sewing hours............3,000.......................7,000

Inspection hours.........2,000.......................4,000

Rework hours..............400..........................600

Required:

1. Calculate the consumption ratios for the four drivers.

2. Is there evidence of product diversity? Explain.