uction operation is making 150 units of a product by engaging five workers for 300 hours. However, 40 t of the units appear to have various quality problems, and the company decides to sell them as seconds at a prie each when a normal unit is sold for £150. To improve the situation, several initiatives are proposed, including a e where, for every improvement, 50 percent will be given to workers and the other 50 percent will be held by the uny. This results in a significant drop in defects as now only 10 units are faulty out of an output of 130 units. pare the productivity after Bonus with the initial productivity. ermine the appropriate bonus per hour for the workers under the bonus scheme if the cost per piece is £70 both be

uction operation is making 150 units of a product by engaging five workers for 300 hours. However, 40 t of the units appear to have various quality problems, and the company decides to sell them as seconds at a prie each when a normal unit is sold for £150. To improve the situation, several initiatives are proposed, including a e where, for every improvement, 50 percent will be given to workers and the other 50 percent will be held by the uny. This results in a significant drop in defects as now only 10 units are faulty out of an output of 130 units. pare the productivity after Bonus with the initial productivity. ermine the appropriate bonus per hour for the workers under the bonus scheme if the cost per piece is £70 both be

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Consider this problem for the next five questions: At Kahel Enterprises, a producer of orange crates sold to growers, they are able to produce 450 crates per 100 logs with their current equipment. They currently purchase 100 logs per day, and each log requires 1.5 labor hours to process. They believe that they can hire a professional buyer who can buy better-quality log at the same cost. If this is the case, they can increase their production to 480 crates per 100 logs. Their total labor hours, on the other hand, will increase by an additional 2 hours per day (this is due to the additional logistics operations needed with the professional buyer). Given below are the cost per component in the system, which includes the labor cost, material cost, capital cost, and energy and utility cost. Component Cost Labor Php 100/labor hour Material (Logs) Php 200/log Capital Php 500 / day Energy & Utility Php 350 / day Question 1: What is the current labor productivity? O 4.5 logs per labor hour O…
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