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2 August, 04:06

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 2,190 5,400 Assembly hours 2,850 4,650 Inspection hours 940 2,430 Rework hours 150 450 Required: Calculate the consumption ratios for the four drivers. Round your answers to two decimal places.

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  1. 2 August, 04:21
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    The formula to compute the consumption ratio is shown below:

    Consumption ratio = Activity driver amount : Total amount of activity driver

    For Cutting hours

    Vaquero = ($2,190) : ($2,190 + $5,400)

    = ($2,190) : ($7,590)

    = 0.29

    Vaquera = ($5,400) : ($2,190 + $5,400)

    = ($5,400) : ($7,590)

    = 0.71

    For Assembly hours

    Vaquero = ($2,850) : ($2,850 + $4,650)

    = ($2,850) : ($7,500)

    = 0.38

    Vaquera = ($4,650) : ($2,850 + $4,650)

    = ($4,650) : ($7,500)

    = 0.62

    For Inspection Hours

    Vaquero = ($940) : ($940 + $2,430)

    = ($940) : ($3,370)

    = 0.28

    Vaquera = ($2,430) : ($940 + $2,430)

    = ($2,430) : ($3,370)

    = 0.72

    For Rework hours

    Vaquero = ($150) : ($150 + $450)

    = ($150) : ($600)

    = 0.25

    Vaquera = ($450) : ($150 + $450)

    = ($450) : ($600)

    = 0.75
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