Textron Manufacturing Inc. assembles industrial testing instruments in two departments, assembly and testing. Operating data for the current and prior year follow:

The firm assembled and tested 20,000 instruments in both years.
Required
In your productivity calculations, use 6 significant digits after the decimal point.
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 ratio for both departments in both years.
4. Compare your answers for requirements 2 and 3. Comment on the results.
5. How do productivity measures differ from variance analysis, in terms of the types of perspectives they offer for the firm's strategic decision making?

Current Year Prior Year Assembly department Actual direct labor hours per instrument Actual wage rate per hour Standard direct labor hours per instrument Standard wage rate per hour 20 38 21 S35 25 $30 24 S28 Testing department Actual direct labor hours per instrument Actual wage rate per hour Standard direct labor hours per instrument Standard wage rate per hour 12 S20 14 S21 838