Figure 4-10
The Manoli Company has collected the following data for use in calculating product costs:
Activity Data: (expected and actual)
Departmental Data: (expected and actual)

-Refer to Figure 4-10. What are the consumption ratios for rug cleaners and sweepers respectively for the inspection of products activity?
A) 0.3; 0.7
B) 0.2; 0.8
C) 0.4; 0.6
D) 0.67; 0.33

Question

Figure 4-10
The Manoli Company has collected the following data for use in calculating product costs:
Activity Data: (expected and actual)
  Departmental Data: (expected and actual)
 
-Refer to Figure 4-10. What are the consumption ratios for rug cleaners and sweepers respectively for the inspection of products activity?
A) 0.3; 0.7 
B) 0.2; 0.8 
C) 0.4; 0.6 
D) 0.67; 0.33

Quizplus · Accepted Answer

To calculate the consumption ratio for rug cleaners and sweepers respectively for the inspection of products activity, we need to divide the expected and actual usage for each activity in the department by the expected and actual usage for the total departmental activity.

For rug cleaners:
Expected consumption ratio = 300/1000 = 0.3
Actual consumption ratio = 350/1100 = 0.318 (rounded to 3 decimal places)

For sweepers:
Expected consumption ratio = 700/1000 = 0.7
Actual consumption ratio = 750/1100 = 0.682 (rounded to 3 decimal places)

Therefore, the consumption ratios for rug cleaners and sweepers respectively for the inspection of products activity are 0.3 and 0.7, which corresponds to choice (A).

Figure 4-10 The Manoli Company Has Collected the Following Data for Use