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Author Question: Power Company has been unhappy with the financial accounting variances that its cost accounting ... (Read 71 times)

fahad

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Power Company has been unhappy with the financial accounting variances that its cost accounting system has been producing, because its managers believe that there is more to evaluating an operation than just examining accounting numbers. Therefore, it has started gathering data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of remote control units for televisions, radios, and stereo components:

20162017
Remote control units produced and sold80,000100,000
Direct manufacture labor-hours12,00013,200
Direct materials used (sets)80,600100,500
Direct manufacture cost per hour$18$20
Direct materials cost per set$31$32

Required: 
a.What is the partial productivity of direct materials for each year?
b.What is the partial productivity of direct manufacturing labor for each year?
c.Did each area improve between 2016 and 2017? Explain.
d.What will be the projected direct material and labor needs for 2013 if remote control units 
increase by 12,000 units, assuming Power Company applies the constant returns to scale technology?


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Marked as best answer by fahad on Mar 6, 2021

ngr69

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fahad

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


apple

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Reply 3 on: Yesterday
Excellent

 

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