As the cost accounting manager at Cambria Chemicals (CC), you are responsible for compiling and reporting various performance measures to the senior managers. The company instituted many efficiency improvement programs recently, and the CFO has asked you to measure and report partial productivity for both labor and materials. Data for the last two years follow. Year 2 Year 1 Gallons input (thousands) Labor -hours (thousands) Gallons of output (thousands) 10, 000 9, 200 9, 000 6, 800 11,800 9, 800 From the accounting records, you also gather the following information for the two years. Year 2 Year 1 Cost of inputs (per gallon) wage rate (per hour) Total manufacturing overhead selling price of output (per gallon) $4 %24 24 84 90 %2$ 23 17 $1, 360, 000 $4 $1, 170, 000 $4 370 375 Required: a. Compute the total factor productivity measures for year 1 and year 2 based on the three inputs (material, labor, and overhead). (Round your answers to 3 decimal places.) Year 2 Year 1 Total factor productivity
As the cost accounting manager at Cambria Chemicals (CC), you are responsible for compiling and reporting various performance measures to the senior managers. The company instituted many efficiency improvement programs recently, and the CFO has asked you to measure and report partial productivity for both labor and materials. Data for the last two years follow. Year 2 Year 1 Gallons input (thousands) Labor -hours (thousands) Gallons of output (thousands) 10, 000 9, 200 9, 000 6, 800 11,800 9, 800 From the accounting records, you also gather the following information for the two years. Year 2 Year 1 Cost of inputs (per gallon) wage rate (per hour) Total manufacturing overhead selling price of output (per gallon) $4 %24 24 84 90 %2$ 23 17 $1, 360, 000 $4 $1, 170, 000 $4 370 375 Required: a. Compute the total factor productivity measures for year 1 and year 2 based on the three inputs (material, labor, and overhead). (Round your answers to 3 decimal places.) Year 2 Year 1 Total factor productivity
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter11: Performance Evaluation And Decentralization
Section: Chapter Questions
Problem 18BEA: Use the following information for Brief Exercises 11-17and 11-18: Indy Company has the following...
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