Figure 7-5

Multiple Choice

Figure 7-5.Rizzo Manufacturing produces two types of cameras: 35mm and digital. The cameras are produced using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows:

-Refer to Figure 7-5. Calculate a consumption ratio for setups on the digital cameras.

A) 0.688
B) 0.730
C) 0.700
D) 0.714
E) 0.500