Homework Answers
Answer:
| 1) Consumption ratios: | ||
| Consumption ratio = Amount of activity driver of the product/Total activity driver quantity. | ||
| Activity Driver | Vaquero | Vaquera |
| Cutting hours | 0.27 | 0.73 |
| 2030/7430 | 5400/7430 | |
| Assembly hours | 0.38 | 0.62 |
| 2850/7500 | 4650/7500 | |
| Inspection hours | 0.28 | 0.72 |
| 930/3360 | 2430/3360 | |
| Rework hours | 0.25 | 0.75 |
| 150/600 | 450/600 | |
| Working. | |||
| Activity Driver | Vaquero | Vaquera | Total |
| Cutting hours | 2030 | 5400 | 7,430 |
| Assembly hours | 2850 | 4650 | 7,500 |
| Inspection hours | 930 | 2430 | 3,360 |
| Rework hours | 150 | 450 | 600 |
| 2) Yes, there is product diversity as the products consume overhead activities in systematically | ||
| different proportions. |
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