Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. Calculate the cost of inputs in 202, assuming no productivity change from 201 to 202. Cost of labor begin{tabular}{|c|c|c|} hline of & 1,260,000 &
1. Calculate the cost of inputs in 202, assuming no productivity change from 201 to 202. Cost of labor \begin{tabular}{|c|c|c|} \hline of & 1,260,000 & \\ \hline & 6,300,000 & \\ \hline$ & 7,560,000 & \\ \hline \end{tabular} Cost of materials Total PQ cost 2. Calculate the actual cost of inputs for 202. Cost of labor \begin{tabular}{|c|c|c|} \hline$ & 1,575,000 & \\ \hline & 5,250,000 & \\ \hline$ & 6,825,000 & \\ \hline \end{tabular} Cost of materials Total current cost What is the net value of the productivity changes? $735,000 How much profit change is attributable to each input's productivity change? If an item is negative, use a minus (-) sign to indicate. Labor productivity change Materials productivity change 3. What if a manager wants to know how much of the total profit change from 201 to 202 is attributable to price recovery? Calculate the total profit change. $ Calculate the price-recovery component. $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started