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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