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Data from the accounting information system regarding collection facility operations in Year 6 include: - The facilities processed 180,000 bins of material- 50% of which
Data from the accounting information system regarding collection facility operations in Year 6 include: - The facilities processed 180,000 bins of material- 50% of which were WW. - The price for a usable cubic yard of WW material decreased by 1/3 rd, but the premium for each cubic yard of AB material in excess of the price paid for WW material increased from 100% of WW prices in Year 5 to 250% of WW prices in Year 6. - As of January 1, Year 6, across the board raises resulted in an increase of 5% in the average wage rates and salaries of all categories at all collection facilities. - Total direct labor cost at collection facilities was $4,281,553 USD! - Machine operator cost was \$2.8 million. - The "Other Facility Overhead" cost pool totaled $1.155 million. - Corporate-level overhead was allocated to products at 89% of their direct labor cost. In February of Year 7, in advance of performance evaluations for division managers, The Mulch Company's chief operating officer (COO) was reviewing cost data for MEM's collection facilities for Year 5 and Year 6 and did not like what he saw. As the company's controller, you will advise the COO on the best interpretation of the data and the implications for performance at the collection facilities
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