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 is the consumption ratio for the plantwide activity rate of direct labor hours?
A) 0.25; 0.75
B) 0.71; 0.29
C) 0.2; 0.8
D) 0.8; 0.2

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 is the consumption ratio for the plantwide activity rate of direct labor hours?
A) 0.25; 0.75 
B) 0.71; 0.29 
C) 0.2; 0.8 
D) 0.8; 0.2

Quizplus · Accepted Answer

The consumption ratio is calculated based on the proportion of direct labor hours used by different activities. The given options suggest that the correct ratio is 0.2 for one activity and 0.8 for another, indicating that one activity consumes 20% of the direct labor hours while the other consumes 80%.

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