Consumption Ratios; Activity Rates Blenestar Company produces two types of get-well cardst scented and regular....
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Accounting
Consumption Ratios; Activity Rates Blenestar Company produces two types of get-well cardst scented and regular. Drivers for the four activities are as foliows: The following activity data has been collected: 1. Calculate the consumption ratios for the four drivers (round to two decimal places). 2. Which of the following statements indicate there is product diversty? significant variation in the consumption ratios from dfiver to driver. Explain the signficance of product diversity for decision making if the company chooses to use machun hours to assign all byerhedi. If machine hours are ised as the ordy diver, cards would receive 250 of the overhesit, and \& cards would receivs 75 of the averhead. yet, the cards consume well over 60% of the non-mbctine related oyerheac. Thus, the scented cards art and the Regular cands are V. This inacruracy can adversely affect many deciusons, including pricing. keep or drop, and cost-volume-proht: 3. Calculate the dictivity rates that would be used to assign costs to each product (round to two decimal places). 3. Calculote the activity rates that would be used to assign costh to each product (round to two decimal places). 4. Suppose that the budget for inspection is 550,000 for the coming year and that the activiry rate for inspecting products is 325 per inspoctian hour Hes many hours of inspection are expected for the coming yoar? inspection hours



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