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Consumption Ratios; Activity Rates Bienestar 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. Caiculate the consumption ratios for the four drivers. Round your answers to two decimal places. 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places. 2. Which of the following statements indicate there is product diversity? Significant 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, cards would receive 25% of the overhead, and cards would receive 75% of the overhead. Yet, the cards consume well over 63% of the non-machine related overhead. Thus, the Scented cards are , and the Regular cards are . This inaccuracy 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 x per inspection hour Setting up equipment os per setup hour 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 may hours of inspection are expected for the coming year? If required, round your answer to nearest whole number of hours. inspection hours Festhask r check Wy Work The consumption ratio is the percentage of time spent per product on each activity. Product 1 Consumption Ratio: Product 1 hours (activity 1) / (Product 1 hours (activity 1 ) + Product 2 hours (activity 1)) Determine the cost per activity by dividing the cost data per activity by the total number of hours per activity. Work backwards to determine total hours in an activity? Cost / Rate = Total hours

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