Consumption Ratios; Activity Rates Blenestar Company produces two types of get-well cards: scented and regular. Drivers for the four activities are as follows: The following activity data has been collected: Required: 1. Calculate the consumption ratios for the four drivers. Rouna your answers to two decimal places. 2. Which of the following statements indicate there is product diversity? Siqnificant variation in the consumption ratios from driver to driver. Explain the significance of product diversity for decision-making if the company chooses to use machine hours to assign all overhead. If machine hours are used as the only driver, scented cards would receive 24% of the overhead, and regular overhead. Yet, the scented cards consume well over 56% of the non-machine related overhead. Thus, the Scented cards are undercosted , and the Regolar cards are overcosted . This insccuracy 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. Rates: Inspecting products Setting up equipment Machining per inspection hour Moving materials 4. Suppose that the budget for inspection is $50,000 for the coming year and that the activity rate for inspecting products is $25 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 Vetotack