Frisen Communication Inc. manufactures a scrambling device for cellular telephones. The device's main component is a delicate
Question:
Frisen Communication Inc. manufactures a scrambling device for cellular telephones. The device's main component is a delicate part, CSU10. CSU10 is easily damaged and requires careful handling. Once damaged, it must be discarded. The firm hires only skilled laborers to manufacture and install CSU10; however, some are still damaged. Robotic instruments process all other parts. Frisen's operating data for 2009 and 2010 follow:
2010 | 2009 | |
Units manufactured | 500,000 | 600,000 |
Units of SCU10 used | 800,000 | 825,000 |
Direct labor hours used | 150,000 | 200,000 |
Cost of CSU10 per unit | $156 | $135 |
Direct labor wage rate per hour | $56 | $63 |
Required
1. Compute the partial operational productivity for 2009 and 2010.
2. On the basis of the partial operational productivity that you computed, what conclusions can you draw about the firm’s productivity in 2010 relative to2009?
Step by Step Answer:
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins