question archive Exercise 7-9 Consumption Ratios; Activity Rates OBJECTIVE 1 Gladmark Company produces two types of get-well cards: scented and regular
Exercise 7-9 Consumption Ratios; Activity Rates OBJECTIVE 1 Gladmark Company produces two types of get-well cards: scented and regular
Subject:MathPrice: Bought3
Exercise 7-9 Consumption Ratios; Activity Rates OBJECTIVE 1 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. 2. Is there evidence of product diversity? Explain. 3. Calculate the activity rates that would be used to assign costs to each product. 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?
