The activity driver for the shipping activity of Withstand Inc.is the number of orders shipped.Product A uses 30 orders, and Product B uses 70 orders.Calculate the consumption ratios for each product.(Note: Round answer to two decimal places.)
A) 0.25; 0.75
B) 0.65; 0.35
C) 0.30; 0.70
D) 0.20; 0.80

Question

Quizplus · Accepted Answer

Consumption Ratio = Amount of Activity Driver per Product / Total Driver Quantity
Consumption Ratio for Product A = 30 orders / (30 orders + 70 orders) = 0.30
Consumption Ratio for Product B = 70 orders / (30 orders + 70 orders) = 0.70

The Activity Driver for the Shipping Activity of Withstand Inc