Question: The Abco Company manufactures electrical assemblies. The current process uses 10 workers and produces 200 units per hour. You are considering changing the process with

The Abco Company manufactures electrical assemblies. The current process uses 10 workers and produces 200 units per hour. You are considering changing the process with new assembly methods that increase output to 300 units per hour, but will require 14 workers. Particulars are as follows:

Workers are paid at a rate of $10 per hour, and overhead is charged at 140% (or 1.4 times) labor costs. Finished switches sell for $20/unit.
a. Calculate the multifactor productivity for the current process.
b. Calculate the multifactor productivity for the new process.
c. Determine if the new process should be implemented.

CURRENT PROCESS 200 10 NEW PROCESS OUTPUT (UNITS / HOUR) NUMBER OF WORKERS MATERIAL COST / HOUR 300 14 $120 $150

Step by Step Solution

★★★★★

3.45 Rating (174 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a b c The new process in... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1368-B-M-A-V-C(2028).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

The Oahu Audio Company manufactures electronic subcomponents that can be sold as is or can be processed further into plug-in assemblies for a variety of intricate electronic equipment. The entire...

The WireOne Company manufactures high-quality coated electrical wire in two departments, Weaving and Coating. Materials are introduced at various points during work in the Weaving Department. After...

The Hampshire Company manufactures umbrellas that sell for $12.50 each. In 2014, the company made and sold 60,000 umbrellas. The company had fixed manufacturing costs of $216,000. It also had fixed...

Table 1 . 3 The Abco Company manufactures electrical assemblies. The current process uses 1 0 workers and produces 2 0 0 units per hour. You are considering changing the process with new assembly...

The Abco Company manufactures electrical assemblies. The current process uses 10 workers and produces 200 units per hour. You are considering changing the process with new assembly methods that...

I need to know how to do this productivity problem. explain step by step in detail how solve this problem. Scenario: The Abco Company manufactures electrical assemblies. The current process uses 10...

the abco company manufactures electrical assemblies. the current provess uses 1 0 workers and produces 2 0 0 units per hour

The Abco Company manufactures electrical assemblies. The current process uses 10 workers and produces 200 units per hour. You are considering changing the process with new assembly methods that...

The Abco Company manufactures electrical assemblies The current process uses 10 workers and produces 200 units per hour You are considering changing the process with new assembly methods that...

Zach bought 200 shares of Goshen stock years ago for $21.35 per share. He sold all 200 shares today for $43 per share. What was his gross capital gain?

A manufacturing company that operates five days a week has four different departments involved in the production of each unit of its product. The maximum daily production capacities of each one are:...

Concept Integration. Your appliance manufacturing company recently implemented a just-in-time inventory system (see Chapter 9) for all parts used in the manufacturing process. How might you expect...

9 Consider Freds investment in units of health capital with the following function: 500 I = 1 000 , c 000 ostof capital. f (a) Indicate some of the components of the cost of capital, and why they...

(a) Find the scalar product of the two vectors 1 and B given in Exercise 1.50. (b) Find the angle between these two vectors.

For the vectors 1, B, and C in Fig 1.34 find the scalar products (a) A B; (b) B C; (c) A c.

Find the angle between each of the following pairs of vectors: (a) A = -200i + 6.00j and B = 2.00i - 3.00j (b) A = 3.00i + 5.00j and B = 1O.00i + 6.00j (c) A = -4.00i + 2.00j and B = 7.00i + 14.oqj

The Green Giant has a 5 percent profit margin and a 3 9 percent dividend payout ratio. The total asset turnover is 1 . 1 times and the equity multi times. What is the sustainable rate of growth?...

Par Two: 4 questions ((Please round up your answer to the nearest two decimals) 1. (20 points) : Your credit card's annual interest rate is 24 pereent and your credit card begins the billing cycle on...

Your firm is contemplating the purchase of a new $773,500 computer-based order entry system. The system will be depreciated straight-line to zero over its sevn-year life. It will be worth $53,000 at...