In 2020 Tia Corp. implemented a program to reduce defects in the manufacturing process. The program focused
Fantastic news! We've Found the answer you've been seeking!
Question:
- In 2020 Tia Corp. implemented a program to reduce defects in the manufacturing process. The program focused on training production line employees at the beginning of the process to identify substandard direct materials that lead to defective units. Selected 2021 and 2020 results for Tia are as follows:
2021 | 2020 | |
Units | 62,500 | 67,188 |
Direct materials (pounds) | 50,000 | 57,109 |
Direct labor (hours) | 25,000 | 24,432 |
Cost of materials per pound | $12.00 | $11.00 |
Cost of direct labor per hour | $ 30.00 | $ 28.00 |
- Calculate the partial operational productivity of Direct Materials and Direct Labor for 2021 and 2020 (round answers to four decimals).
- Calculate the partial financial productivity of Direct Materials and Direct Labor for 2021 and 2020 (round answers to four decimals).
- Was Tia’s quality program effective? Support your answer with relevant insights (don’t repeat calculation results) from your productivity analysis above.
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
Posted Date: