Refer to Cornerstone Exercise 15-3. Shawnee Company provides the following addi- CORNERSTONE 15-4 tional information so that total productivity can be valued:

Required:
1. Calculate the cost of inputs in 2011, assuming no productivity change from 2010 to 20VN 2. Calculate the actual cost of inputs for 2011. What is the net value of the productivity changes? How much profit change is attributable to each input’s productivity change?
3. What ifa manager wants to know how much of the total profit change from 2010 to 2011 is attributable to price recovery? Calculate the price-recovery component, and comment on its meaning.LO1 

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2010 2011 Number of units produced 180,000 150,000 Labor hours used 36,000 37,500 Materials used (lbs.) 720,000 500,000 Unit selling price $20 $22 Wages per labor hour $12 $14 Cost per pound of material $3.40 $3.50