Question - 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
|
2,030
|
5,400
|
|
Assembly hours
|
2,850
|
4,650
|
|
Inspection hours
|
1,000
|
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.