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As the cost accounting manager at McKinley Industries (MI), you are responsible for compiling and reporting various performance measures to the senior managers. MI instituted
As the cost accounting manager at McKinley Industries (MI), you are responsible for compiling and reporting various performance measures to the senior managers. MI instituted many efficiency improvement programs recently and the CFO has asked you to measure and report partial productivity for both labor and materials. From the accounting records, you also gather the following information for the two years: Year 2 Year 1 Gallons input 45,900 41,200 Labor hours 50,900 39,700 Output (gallons) 25,300 21,600 Year 2 Year 1 Cost of inputs (per gallon) $ 71 $ 81 Wage rate (per hour) $ 11 $ 19 Total manufacturing overhead $ 2,830,000 $ 2,950,000 Selling price of output (per gallon) $ 373 $ 353 Required: Compute the total factor productivity measures for year 1 and year 2 based on the three inputs (material, labor, and overhead). (Round your total factor productivity to 3 decimal places. Omit the "$" sign in your response.) Year 2 Year 1 Total output value $ $ Materials value Labor value Overhead value Total value of input costs $ $ Total factor productivity
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