Question
Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate partDTV-12. DTV-12 requires careful
Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate partDTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Fast Wire Incorporated for 2021 and 2022 relative to the insertion of DTV-12.
2021 | 2022 | |
---|---|---|
Number of phones manufactured | 845,454 | 1,112,440 |
Units of DTV-12 used | 964,500 | 1,080,000 |
Direct labor hours for DTV-12 insertion | 2,550 | 3,425 |
Total cost of DTV-12 units | $ 1,447,500 | $ 2,337,500 |
Direct labor wage rate per hour | $ 89.50 | $ 112 |
The partial direct labor financial productivity ratio for 2022 is:
Multiple Choice
0.26.
0.33.
1.86.
2.90.
3.95.
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