Question

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:
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

Answer 1

Answer:

Attached is the complete questions containing the missing variables:

The activity rates for each activity are stated thus:

Cutting activity rate =$24/cutting hour

Assembly activity rate =$40/ assembly hour

Inspecting activity rate =$20/ inspecting hour

Reworking activity rate=$75/reworking hour

Explanation:

Cutting activity rate =$225600/(4000+5400)=$24/cutting hour

Assembly activity rate =$300000/(2850+4650)=$40/ assembly hour

Inspecting activity rate=$67500/(945+2430)=$20/ inspecting hour

Reworking activity rate=$45000/(150+450)=$75/reworking hour

Obviously you did not include the overheads incurred for each activity in your question,but I have the overhead for each activity in the attached full question with which I computed the required overhead activity rates

Download xlsx

Answer 2

Answer:

                                 Vaquero               Vaquera

Cutting hours            42.55%                  57.45%

Assembly hours        38%                       62%

Inspection hours      28%                         72%

Rework hours         25%                           75%

Explanation:

The question is incomplete, it does not have total capacity for the four activities available but i will assume that the activities maximize consumption and shares it amongst themselves hence to get the consumption ratio from their total.

cutting hours 4000+5400 = 9400

Assembly Hours 2850 + 4650= 7500

Inspection hours 945 + 2430= 3375

Rework hours 150 + 450 = 600

consumption ratio = capacity per activity / total capacity per total activities