Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows: Vaquero Vaquera Cutting hours 2,090 5,400 Assembly hours 2,850 4,650 Inspection hours 920 2,430 Rework hours 150 450 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places. 2. Is there evidence of product diversity? Explain.
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Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows:
Vaquero | Vaquera | |||
Cutting hours | 2,090 | 5,400 | ||
Assembly hours | 2,850 | 4,650 | ||
Inspection hours | 920 | 2,430 | ||
Rework hours | 150 |
450 |
1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places.
2. Is there evidence of product diversity? Explain.
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- Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows: Vaquero Vaquera Cutting hours 2,120 5,400 Assembly hours 2,850 4,650 Inspection hours 980 2,430 Rework hours 150 450 Required: 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places. Activity Driver Vaquero Vaquera Cutting hours Assembly hours Inspection hours Rework hoursConsumption Ratios Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows: Vaquero Vaquera Cutting hours 2,160 5,400 Assembly hours 2,850 4,650 Inspection hours 940 2,430 Rework hours 150 450 Required: 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places. Activity Driver Vaquero Vaquera Cutting hours fill in the blank 1 fill in the blank 2 Assembly hours fill in the blank 3 fill in the blank 4 Inspection hours fill in the blank 5 fill in the blank 6 Rework hours fill in the blank 7 fill in the blank 8 2. Is there evidence of product diversity? Explain.Consumption Ratios Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows: Vaquero Vaquera Cutting hours 2,130 5,400 Assembly hours 2,850 4,650 Inspection hours 990 2,430 Rework hours 150 450 Required: 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places. Activity Driver Vaquero Vaquera Cutting hours Assembly hours Inspection hours Rework hours 2. Is there evidence of product diversity? Explain.
- Consumption Ratios Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows: Vaquero Vaquera Cutting hours 4,000 5,400 Assembly hours 2,850 4,650 Inspection hours 945 2,430 Rework hours 150 450 Required: 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places. Activity Driver Vaquero Vaquera Cutting hours Assembly hours Inspection hours Rework hours 2. Is there evidence of product diversity? Explain. Yes, the variation in the consumption ratios show the product diversity. VConsumption Ratios Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows: Vaquero Vaquera Cutting hours 2,050 5,400 Assembly hours 2,850 4,650 Inspection hours 930 2,430 Rework hours 150 450 Required: 1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places. Activity Driver Vaquero Vaquera Cutting hours Assembly hours Inspection hours Rework hours 2. Is there evidence of product diversity? Explain. Yes, the variation in the consumption ratios show the product diversity.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…
- A company makes four products that have the following characteristics: Product A sells for $75 but needs $40 of materials to produce; Product B sells for $90 but needs $65 of materials to produce; Product C sells for $110 but needs $80 of materials to produce; Product D sells for $135 but needs $105 of materials to produce. The processing requirements for each product on each of the four machines are shown in the table. Processing Time (min/unit) A Work Center W 8 4 12 10 14 10 12 8 10 9 12 9 6. Y Vork centers W, X, Y, and Z are available for 5 days per week, 1 shift per day (8 hrs.) and have no setup me when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In the uestions that follow, the traditional method refers to maximizing the contribution margin per unit for ach product, and the bottleneck method refers to maximizing the contribution margin per minute at the ottleneck for each product. Each worker is paid $15 per hour and is paid for an…Schell Company manufactures automobile floor mats. It currently has two product lines, the Standard and the Deluxe. Suppose that Schell has conducted further research into its overhead and potential cost drivers. As a result, the company has compiled the following detailed information, breaking total overhead into three activity pools: Activity Pools Material handling Quality control Machine maintenance Req 1 Cost Driver Number of moves Number of inspections Number of machine hours Req 2 and 3 Required: 1. Calculate the activity rates for each activity pool assuming Schell uses an ABC system. 2. Calculate the amount of overhead that Schell will assign to the Standard floor mat line. 3. Determine the amount of overhead Schell will assign to the Deluxe product line. Complete this question by entering your answers in the tabs below. Material Handling Quality Control Machine maintenance Cost Assigned to Pool Activity Rate $ 2,068.00 $ 8,640.00 $ 14,120.00 Calculate the activity rates for…Larsen, Inc., produces two types of electronic parts and has provided the following data: There are four activities: machining, setting up, testing, and purchasing. Required: 1. Calculate the activity consumption ratios for each product. 2. Calculate the consumption ratios for the plantwide rate (direct labor hours). When compared with the activity ratios, what can you say about the relative accuracy of a plantwide rate? Which product is undercosted? 3. What if the machine hours were used for the plantwide rate? Would this remove the cost distortion of a plantwide rate?
- Hazelnut Corporation manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $143,484 in overhead. The company has identified the following information about its overhead activity pools and the two product lines: Quantity or Amount Consumed by Basic Activity Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours Required 1 Complete this question by entering your answers in the tabs below. Basic Model Luxury Model Required 2 Required 3 Required 4 Required: 1. Suppose Hazelnut used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. 2. Calculate the activity rates for each activity pool in Hazelnut's ABC system. 3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system. 4. Determine the amount of overhead Hazelnut will assign…The cost of materials for product A are as follows. Material W: $2,250 Material X: $3,000 Material Y: $3,600 Material Z: $150 If the material proportions were displayed on a pie chart, how many degrees would material Y represent? A 90 degrees B 120 degrees C 144 degrees D 204 degreesInfo in images Required: 1. Compute the product margins for the B300 and T500 under the company’s traditional costing system. 2. Compute the product margins for B300 and T500 under the activity-based costing system. 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. 1. Compute the product margins for the B300 and T500 under the company’s traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) B300 T500 Total Product margin $0 2. Compute the product margins for B300 and T500 under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.) B300 T500 Total Product margin $0 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2…