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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 total factor productivity based on three inputs (material, labor, and overhead). From the accounting records, you also gather the following information for the two years:

Year 2 Year 1
Gallons input 45,700 41,900
Labor hours 51,000 38,000
Output (gallons) 26,100 20,600

Year 2 Year 1
Cost of inputs (per gallon) $ 74 $ 77
Wage rate (per hour) $ 23 $ 7
Total manufacturing overhead $ 2,760,000 $ 2,970,000
Selling price of output (per gallon) $ 365 $ 346

Required:

Compute the total factor productivity measures for year 1 and year 2 based on the three inputs (material, labor, and overhead). (Round your answers to 3 decimal places.)

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