Managerial Accounting
Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Consumption Ratios

Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows:

  Vaquero Vaquera
Cutting hours 2,160   5,400  
Assembly hours 2,850   4,650  
Inspection hours 940   2,430  
Rework hours 150   450  

Required:

1.  Calculate the consumption ratios for the four drivers. Round your answers to two decimal places.

Activity Driver     Vaquero     Vaquera  
Cutting hours fill in the blank 1 fill in the blank 2
Assembly hours fill in the blank 3 fill in the blank 4
Inspection hours fill in the blank 5 fill in the blank 6
Rework hours fill in the blank 7 fill in the blank 8

2.  Is there evidence of product diversity? Explain.
 

 

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