Gladmark company produces two types of get well cards scented and regular drivers for the four activities as follows:

Question

Scented Regular

Inspection hours 40 160

Set up hours 50 50

Machine hours 200 600

Number of moves 225 75

1. Calculate the consumption ratios for the four drivers
Is there evidence of product diversity? Explain

Referring to the data above the following data has been calculated

Inspecting products 2000
Setting up equipment 2,500
Machining 4000
Moving materials 900

1. Calculate the activity rates that would be used to assign cost to each product

2. Suppose the activity rate for inspecting products is $20 per inspection hour how many hours of inspection are expected for the coming year

Answer 1

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