Question
Ashley Technology Incorporated manufactures a scrambling device for cellular telephones. The devices main component is a delicate part, CT140. CT140 is easily damaged and requires
Ashley Technology Incorporated 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:
2022 | 2021 | |
---|---|---|
Units manufactured | 800,000 | 1,000,000 |
Number of CT140 used | 950,000 | 1,100,000 |
Number of direct labor hours spent | 200,000 | 250,000 |
Cost of CT140 per unit | $ 161 | $ 140 |
Direct labor wage rate per hour | $ 61 | $ 67 |
Required:
1. Compute the total productivity ratios for 2021 and 2022. Assume that fixed manufacturing costs are $55 million in both 2021 and 2022. (Round your answers to 4 decimal places.)
The answers are not
2021: 0.2662, 4.0000
2022: 0.2909, 4.0000
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