A product is processed by two departments during its manufacturing in the following order: machining and assembly.
Question:
A product is processed by two departments during its manufacturing in the following order: machining and assembly. In 2020, the company was able to practice an average selling price of $ 3.22/unit. In 2021, due to competition, it was forced to practice an average sale price of $ 2.85/unit. The following data refer to the product: Year Department Production Raw material ($/unit) Labor (hours/unit) Labor cost ($/hour) 2004 Machining 20,000 0.45 0.15 4.16 Assembly 18,500 0.05 0.08 5.12 2005 Machining 23,600 0.42 0.12 4.50 Assembly 22,200 0.05 0.06 5.60 a) Calculate the total productivity measure and the partial measures for raw materials and labor for this company for both years. b) What do these measures tell you about the company? Tip: keep in mind that output is a finished product.
can you please show how you get the numbers for A!
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1118033890
3rd Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly