Question 4

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.

		2018		2019
Number of phones manufactured		604,206		785,467
Units of DTV-12 used		961,200		1,074,500
Direct labor hours for DTV-12 insertion		1,800		2,820
Total cost of DTV-12 units	$	1,444,750	$	2,334,750
Direct labor wage rate per hour	$	67.00	$	90

The partial direct labor financial productivity ratio for 2018 is: (Round calculations to 2 significant digits.)

Multiple Choice

• 4.12.

• 4.88.

• 2.06.

• 2.44.

• 5.01.

Broha Company manufactured 3,456 units of its only product during 2019. The inputs for this production are as follows:

640 pounds of Material A at a cost of $1.50 per pound

490 pounds of Material H at a cost of $3.70 per pound

680 direct labor hours at $58 per hour

The firm manufactured 3,225 units of the same product in 2018 with the following inputs:

690 pounds of Material A at a cost of $2.15 per pound

550 pounds of Material H at a cost of $3.45 per pound

590 direct labor hours at $56 per hour

In 2019, the partial financial productivity of Material A is: (Round all calculations to 2 significant digits.)

Multiple Choice

• 3.55.

• 3.50.

• 3.60.

• 1.31.

• 2.99.