Question
Gutsen Communications Inc. manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate partDTV-12. DTV-12 requires careful
Gutsen Communications Inc. 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 Gutsen Communications Inc. for 2018 and 2019 relative to the insertion of DTV-12.
20182019Number of phones manufactured604,950780,600Units of DTV-12 used960,3001,073,000Direct labor hours for DTV-12 insertion1,8502,655Total cost of DTV-12 units$1,444,000$2,334,000Direct labor wage rate per hour$68.50$84
The partial direct labor operational productivity ratio for 2018 is:
Multiple Choice
- 294 units per DLH.
- 327 units per DLH.
- 422 units per DLH.
- 256 units per DLH.
- 163 units per DLH.
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