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In the fourth quarter of last year, Colditz Company embarked on a major effort to improve productivity. It redesigned products, reengineered manufacturing processes, and offered

In the fourth quarter of last year, Colditz Company embarked on a major effort to improve productivity. It redesigned products, reengineered manufacturing processes, and offered productivity improvement courses. The effort was completed in the last quarter of the current year. The controllers office has gathered the following year-end data to assess the results of this effort:

Current Year Prior Year
Units manufactured and sold 30,000 24,000
Selling price of the product $ 50 $ 50
Direct materials used (pounds) 15,000 14,000
Cost per pound of materials $ 15 $ 12
Direct labor hours 6,250 7,000
Hourly wage rate $ 30 $ 25
Power (kwh) 3,000 1,500
Cost of power per kwh $ 2 $ 2

Required

1. Prepare a summary contribution income statement for each of the 2 years, and calculate the change in operating income.

2. Compute the partial operational productivity ratios for each production factor in each year.

3. Compute the partial financial productivity ratios for each production factor in each year.

image text in transcribedimage text in transcribed

Required 1 Required 2 Required 3 Compute the partial operational productivity ratios for each production factor in each year. (Round your answers to 4 decimal places.) Current Year Direct materials Direct labor Power Prior Year 0.01000.0117 0.00420.0058 0.0013 0.0020 Required 1 Required 2 Required 3 Compute the partial financial productivity ratios for each production factor in each year. (Round your answers to 4 decimal places.) Current Year 0.1500 0.1250 0.0040 Prior Year Direct materials Direct labor Power 0.1400 0.1458 0.0025

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