Question
Ashley Technology Inc. manufactures a scrambling device for cellular telephones. The devices main component is a delicate part, CT140. CT140 is easily damaged and requires
Ashley Technology Inc. manufactures a scrambling device for cellular telephones. The devices 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. Ashleys operating data for 2 years are as follows:
2019 | 2018 | ||||||
Units manufactured | 1,450,000 | 1,700,000 | |||||
Number of CT140 used | 1,730,000 | 2,000,000 | |||||
Number of direct labor hours spent | 290,000 | 340,000 | |||||
Cost of CT140 per unit | $ | 170 | $ | 149 | |||
Direct labor wage rate per hour | $ | 70 | $ | 76 | |||
1. Compute the partial operational productivity for both direct materials and direct labor for each of the 2 years. (Round your answers to 4 decimal places.)
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