Profile Productivity Measurement Objective In 20x2, Choctaw Company implements a new process affecting labor and materials. The
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Profile Productivity Measurement Objective
In 20x2, Choctaw Company implements a new process affecting labor and materials. The following reported data are provided to evaluate the effect on the company’s productivity:
20x1 | 20x2 | |
Number of units produced | 510,000 | 360,000 |
Labor hours used | 127,500 | 72,000 |
Materials used (lbs.) | 1,457,143 | 900,000 |
Required:
1. Calculate the productivity profile for 20x1. If required, round your answers to two decimal places.
Partial Operational Productivity Ratios | 20x1 Profile |
Labor productivity ratio | |
Material productivity ratio |
2. Calculate the productivity profile for 20x2. If required, round your answers to two decimal places.
Partial Operational Productivity Ratios | 20x2 Profile |
Labor productivity ratio | |
Material productivity ratio |
3. What if the labor hours used in 20x2 were 109,500? What does comparison of the 20x1 and 20x2 profiles now communicate? If required, round your answers to two decimal places.
Partial Operational Productivity Ratios | 20x1 Profile | 20x2 Profile |
Labor productivity ratio | ||
Material productivity ratio |
Related Book For
Cornerstones of Cost Management
ISBN: 978-1305970663
4th edition
Authors: Don R. Hansen, Maryanne M. Mowen
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