Refer to Cornerstone Exercise 7-29. The following activity data have been collected:

                    Cutting             $60,000
                    Assembling        25,000
                    Inspecting          12,000
                    Reworking            6,000

Required:

Calculate the activity rates that would be used to assign costs to each product.

Data From Exercise 7-29:

Rico Company produces two types of boots: cowboy and cowgirl. There are four activities associated with the two products. Drivers for the four activities are as follows:

Required:
  1.  Calculate the consumption ratios for the four drivers.
  2.  Is there evidence of product diversity? Explain.