Welstar Company produces two types of get-well cards: scented and regular. Drivers for four activities are given below:
|
Scented Cards
|
Regular Cards
|
|
Inspection hours
|
40
|
160
|
|
Setup hours
|
50
|
50
|
|
Machine hours
|
200
|
600
|
|
Number of moves
|
225
|
75
|
Required
1. Calculate the consumption ratios for the four drivers.
2. Is there evidence of product diversity? Explain.
Refer to Exercise 4-7. The following activity data have been collected:
|
Inspecting products
|
$2,000
|
|
Setting up equipment
|
2,500
|
|
Machining
|
4,000
|
|
Moving materials
|
900
|
Required
1. Calculate the activity rates that would be used to assign costs to each product.
2. Suppose that the activity rate for inspecting products is $20 per inspection hour. How many hours of inspection are expected for the coming year?