Answered: Consumption Ratios Zapato Company…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 4CE: Larsen, Inc., produces two types of electronic parts and has provided the following data: There are...

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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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