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Consumption Ratios; Activity Rates
Felicidad 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 110   90   Setup hours 90   30   Machine hours 190   630   Number of moves 240   70  
  Scented Cards Regular Cards Inspection hours 110   90   Setup hours 90   30   Machine hours 190   630   Number of moves 240   70  
  Scented Cards Regular Cards
 
Scented Cards
Scented Cards
Regular Cards
Regular Cards
Inspection hours 110   90  
Inspection hours
110
 
90
 
Setup hours 90   30  
Setup hours
90
 
30
 
Machine hours 190   630  
Machine hours
190
 
630
 
Number of moves 240   70  
Number of moves
240
 
70
 
The following activity data have been collected:
Inspecting products $4,950 Setting up equipment 4,770 Machining 6,440 Moving materials 1,360
Inspecting products $4,950 Setting up equipment 4,770 Machining 6,440 Moving materials 1,360
Inspecting products $4,950
Inspecting products
$4,950
Setting up equipment 4,770
Setting up equipment
4,770
Machining 6,440
Machining
6,440
Moving materials 1,360
Moving materials
1,360
Required:
Required:
1.  Calculate the consumption ratios for the four drivers. Round your answers to two decimal places.
1.  
  Scented Cards Regular Cards Inspection hours ________________ ______________ Setup hours _________________ ________________ Machine hours ______________ ________________ Number of moves ____________________ ________________
  Scented Cards Regular Cards Inspection hours ________________ ______________ Setup hours _________________ ________________ Machine hours ______________ ________________ Number of moves ____________________ ________________
  Scented Cards Regular Cards
 
Scented Cards
Scented Cards
Regular Cards
Regular Cards
Inspection hours ________________ ______________
Inspection hours
________________
______________
Setup hours _________________ ________________
Setup hours
_________________
________________
Machine hours ______________ ________________
Machine hours
______________
________________
Number of moves ____________________ ________________
Number of moves
____________________
________________

2.  Calculate the activity rates that would be used to assign costs to each product. Round your answers to the nearest cent.
2.  
Rates:   Inspecting products $ _____________per inspection hour Setting up equipment $ _______________per setup hour Machining $ ______________ per machine hour Moving materials $ _______________per move
Rates:   Inspecting products $ _____________per inspection hour Setting up equipment $ _______________per setup hour Machining $ ______________ per machine hour Moving materials $ _______________per move
Rates:  
Rates:
Rates:
 
Inspecting products $ _____________per inspection hour
Inspecting products
$ _____________per inspection hour
Setting up equipment $ _______________per setup hour
Setting up equipment
$ _______________per setup hour
Machining $ ______________ per machine hour
Machining
$ ______________ per machine hour
Moving materials $ _______________per move
Moving materials
$ _______________per move
3  Suppose that the activity rate for inspecting products is $20 per inspection hour. How many hours of inspection are expected for the coming year? If required, round your answer to nearest whole number of hours. __________________inspection hours
3

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