Action Skateboards, Inc., manufactures state-of-the-art skateboards and related equipment. The production process involves the following departments and

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Action Skateboards, Inc., manufactures state-of-the-art skateboards and related equipment. The production process involves the following departments and tasks: the Molding Department, where the board's base is molded; the Sanding Department, where the base is sanded after being taken out of the mold; the Fiber-Ap Department, where a fiberglass coating is applied; and the Assembling Department, where the wheels are attached and the board is inspected. After the board is molded, all processes are performed by hand.
Linda Raymond, the manager of the firm's California branch, is concerned about the number of hours her employees are working.
The California plant has a two-shift labor force. The actual hours worked for the past four weeks are as follows:
Action Skateboards, Inc., manufactures state-of-the-art skateboards and related equipment. The
Action Skateboards, Inc., manufactures state-of-the-art skateboards and related equipment. The

Expected labor hours per product for each operation are Molding, 3.4 hours; Sanding, 0.5 hour; Fiber-Ap, 4.0 hours; and Assembling, 6.5 hours. Actual units completed are as follows:

Action Skateboards, Inc., manufactures state-of-the-art skateboards and related equipment. The

Required
1. Prepare an analysis of each week to determine the average actual labor hours worked per board for each phase of the production process and for each shift. Carry your solution to two decimal places.
2. Using the information from 1 and the expected labor hours per board for each department, prepare an analysis showing the differences in each phase for each shift. Identify possible reasons for the differences.

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Principles of Accounting

ISBN: 978-0618736614

10th edition

Authors: Belverd Needles, Marian Powers, Susan Crosson

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