Ashley Technology Inc. manufactures a scrambling device for cellular telephones. The device’s main component is a delicate part, CT140. CT140 is easily damaged and requires careful handling. Once damaged, it must be discarded. The firm hires only skilled laborers to manufacture and install CT140; however, some are still damaged. Robotic instruments process all other parts. Ashley’s operating data for 2 years are as follows:

Required

1. Compute the partial operational productivity for both direct materials and direct labor for each of the 2 years.

2. On the basis of the partial operational productivity that you computed, what conclusions can you draw about the firm’s productivity in 2022 relative to 2021?

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2022 2021 750,000 900,000 150,000 $156 $56 Units manufactured 1,000,000 Number of CT140 used Number of direct labor hours spent Cost of CT140 per unit Direct labor wage rate per hour 1,050,000 200,000 $135 $62