Guble Company manufactures wallets from fabric. In 2012, Guble made 2,500,000 wallets using 1,875,000 metres of fabric.
Question:
Suppose that in 2013 Guble makes 2,650,000 wallets, uses 1,669,500 metres of fabric, and reduces capacity to 2,800,000 units and costs to $8,680,000.
REQUIRED
1. Calculate the partial-productivity ratios for materials and conversion (capacity costs) for 2013, and compare them to a benchmark for 2012 calculated based on 2013 output.
2. How can Guble Company use the information from the partial-productivity calculations?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
Question Posted: