Question
Terrell Industries produces a single product at its Roosevelt facility. The product has two main inputs, metal and labor, with additional costs being included in
Terrell Industries produces a single product at its Roosevelt facility. The product has two main inputs, metal and labor, with additional costs being included in manufacturing overhead. The plant carries neither work-in-process nor finished goods inventories. Information from the previous four quarters of production follows:
Q1 | Q2 | Q3 | Q4 | |
---|---|---|---|---|
Metal input (pounds) | 194,000 | 210,000 | 240,000 | 230,000 |
Labor input (hours) | 9,700 | 10,560 | 12,500 | 11,500 |
Sales (pounds) | 164,900 | 184,800 | 204,000 | 190,900 |
Average price of metal per pound | $ 0.62 | $ 0.66 | $ 0.70 | $ 0.65 |
Average wage rate per hour | 32.00 | 34.00 | 28.00 | 30.00 |
Average sales price per pound | 6.20 | 5.95 | 6.10 | 6.00 |
Manufacturing overhead (total) | 387,224 | 418,660 | 397,000 | 421,820 |
Required:
a. Compute the partial productivity measures for metal for the four quarters.
b. Compute the partial productivity measures for labor for the four quarters.
c. Compute the total factor productivity for the four quarters.
Compute the partial productivity measures for metal for the four quarters. Compute the total factor productivity for the four quarters. Compute the partial productivity measures for labor for the four quartersStep by Step Solution
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