50.1K

Verified Solution

Link Copied!

Consumption Ratios; Activity Rates Gladmark Company produces two types of get-well cards: scented and regular. Drivers for the four activities are as follows: Scented Cards Regular Cards Inspection hours 60 210 Setup hours 75 75 Machine hours 150 500 Number of moves 300 125 The following activity data have been collected: Inspecting products $12,500 Setting up equipment 6,250 Machining 24,000 Moving materials 2,975 Required: 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places. Scented Cards Regular Cards Inspection hours fill in the blank 1 fill in the blank 2 Setup hours fill in the blank 3 fill in the blank 4 Machine hours fill in the blank 5 fill in the blank 6 Number of moves fill in the blank 7 fill in the blank 8 2. Is there evidence of product diversity? Explain. The input in the box below will not be graded, but may be reviewed and considered by your instructor. 3. Calculate the activity rates that would be used to assign costs to each product. Round your answers to the nearest cent. Activity rates: Inspecting products $fill in the blank 10 per inspecting hour Setting up equipment $fill in the blank 11 per setup hour Machining $fill in the blank 12 per machine hour Moving materials $fill in the blank 13 per move 4. Suppose that the activity rate for inspecting products is $50 per inspection hour. How many hours of inspection are expected for the coming year? fill in the blank 14 inspection hours

Answer & Explanation Solved by verified expert

See Answer