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In 2019, Sunset Safari, Inc., a helmet manufacturing company, implemented a new process affecting labor and materials. Two years of expanded data are as follows:
In 2019, Sunset Safari, Inc., a helmet manufacturing company, implemented a new process affecting labor and materials. Two years of expanded data are as follows:
2018 | 2019 | |||
Number of units produced | 550,000 | 750,000 | ||
Labor hours used | 68,750 | 105,000 | ||
Materials used (lbs.) | 687,500 | 1,000,000 | ||
Unit selling price | $40 | $40 | ||
Wages per labor hour | $20 | $18 | ||
Cost per pound of material | $5.00 | $5.50 |
If the base-period productivity ratio for labor is 8 units per hour and for material used is 0.80 units per pound, calculate the cost of inputs in 2019 assuming no productivity change from 2018 to 2019.
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