Question: Textron Manufacturing Inc. assembles industrial testing instruments in two departments, assembly and testing. Operating data for 2009 and 2010 follow: 2010 2009 Assembly department Actual

Textron Manufacturing Inc. assembles industrial testing instruments in two departments, assembly and testing. Operating data for 2009 and 2010 follow:

	2010	2009
Assembly department
Actual direct labor hours	20	25
Actual wage rate per hour	$36	$30
Standard direct labor hours	21	24
Standard wage rate per hour	$35	$28

Testing department
Actual direct labor-hours	10	12
Actual wage rate per hour	$24	$20
Standard direct labor-hours	11	14
Standard wage rate per hour	$25	$21

The number of instruments assembled and tested in 2009 and in 2010 =			20,000

The firm assembled and tested 20,000 instruments in both 2009 and 2010.

Required
1. Calculate the direct labor rate and the efficiency variances for both departments in both years.
2. Calculate the direct labor partial operational productivity ratio for both departments in both years.
3. Calculate the partial financial productivity for both departments in both years.
4. Compare your answers for requirements 2 and 3. Comment on the results.
5. Do productivity measures offer different perspectives for the firmâ€™s strategic decisions from those of varianceanalysis?

Required 1. Calculate the direct labor rate and the efficiency variances for both departments in both years. 2. Compute the direct labor partial operational prouctivity ratio for both departm ents in both years. 3. Determine the partial financial productivity for both departm ents in both years. 4. Compare your answers for requirements 2 and 3. Comment on the results 5. Do productivity measures offer different perspectives for the firm's strategic decisions from those of vari ance analysis?

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