Consumption Ratios: Activity Rates Dienestar 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 Setup fours Machine hours Number of moves The following activity data has been collected: Inspecting products Setting up equipment Machining Moving materials Required: Inspection hours Setup fours Machine tours Number of moves 140 100 210 Rates: 235 1. Calculate the comption rabos for the four drivers. Round your answers to two decimal places. Scented Cards 0.58 ✔ 0.83 ✔ 0.26 ✔ 0.77 Inspecting preds Setting up quipment Madieny Meny materials 100 20 600 70 $4,970 4.740 6.320 1,290 2. Which of the following statements indicate there is product diversity? Significant variation in the consumption ratios from driver to driver. ✓ Explain the significance of product divenity for decision-making if the company chooses to use inachine sous to assign all overhead Regular Cards 0.42 ✔ 0.17 V 0.74 ✔ 0.23 ✔ If machine hours are used as the only driver, scented cards Ciume wet ver 50% of the mu affect many dicsoms, indudeg pring, 3. Calculate the activity rates that would be used to as cards would recovs 28 of theved, at reguler eated overhead. To the Scene cardare undercasted por drop, and cost-valum-profe costs to sach product Round your answers to the nearest cent. Xectionchar Xe bour Xpormabhuse Xuve cards would receive 74% of the overhead. Yet, the scented and the Regular cands are gvercested ✔ This inaccuracy cam
Consumption Ratios: Activity Rates Dienestar 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 Setup fours Machine hours Number of moves The following activity data has been collected: Inspecting products Setting up equipment Machining Moving materials Required: Inspection hours Setup fours Machine tours Number of moves 140 100 210 Rates: 235 1. Calculate the comption rabos for the four drivers. Round your answers to two decimal places. Scented Cards 0.58 ✔ 0.83 ✔ 0.26 ✔ 0.77 Inspecting preds Setting up quipment Madieny Meny materials 100 20 600 70 $4,970 4.740 6.320 1,290 2. Which of the following statements indicate there is product diversity? Significant variation in the consumption ratios from driver to driver. ✓ Explain the significance of product divenity for decision-making if the company chooses to use inachine sous to assign all overhead Regular Cards 0.42 ✔ 0.17 V 0.74 ✔ 0.23 ✔ If machine hours are used as the only driver, scented cards Ciume wet ver 50% of the mu affect many dicsoms, indudeg pring, 3. Calculate the activity rates that would be used to as cards would recovs 28 of theved, at reguler eated overhead. To the Scene cardare undercasted por drop, and cost-valum-profe costs to sach product Round your answers to the nearest cent. Xectionchar Xe bour Xpormabhuse Xuve cards would receive 74% of the overhead. Yet, the scented and the Regular cands are gvercested ✔ This inaccuracy cam
Chapter1: Financial Statements And Business Decisions
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Consumption Ratios; Activity Rates
Dienestar 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
Setup fours
Machine hours
Inspection hours
Setup fours
140
100
Number of moves
The following activity data has been collected:
Inspecting products
Setting up equipment
Machining
Moving materials
Required:
210
235
Rates:
100
20
1. Calculate the commption ratus for the four drivers. Round your answers to two decimal places.
Scented Cards
Regular Cards
0.42 ✔
0.17 V
0.74 ✓
pocting produds
Setting up equipment
Machining
Moving material
600
0.50
0.83 ✔
0.26 ✔
0.77 ✔
70
$4,970
4,740
6.320
1,290
Machine hours
Number of moves
2. Which of the following statements indicate there is product diversity?
Significant variation in the consumption ratios from driver to driver
Explain the significance of product diversity for decision-making it the company Chooses to use inachine uus to assign all overhead
If machine hours are used as the only driver, scented
Lards would receive 200 of the vertical, and regular
cards sume wut over 50% of the monomad me ndalud overtread. Tho, the Scen Cardare undercasted ✔and the Regular cards are overcosted
affect many decisions induding pricing, keep or drop, and cost-volume-profe
3. Calculate the activity rates that would be used to assun costs to sach product Round your answers to the nearest cent.
0.23
X puction hour
BE
Xperstabour
2 Xpermashose
X prove
cards would receive 74% of the overhead. Yet, the scented
✔This inaccuracy can
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