in the fourth quarter of last year, Colditz Company embarked on a major effort to improve...

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 controller’s office has gathered the following year-end data to assess the results of this effort:

	Current Year		Prior Year
Units manufactured and sold		24,000		19,200
Selling price of the product	$	53	$	53
Direct materials used (pounds)		15,300		14,300
Cost per pound of materials	$	10	$	8
Direct labor hours		6,550		7,300
Hourly wage rate	$	25	$	20
Power (kwh)		1,600		800
Cost of power per kwh	$	3	$	3

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.

Solutions

Expert Solution

ekkarill92 answered 3 weeks ago

Next > < Previous

Related Solutions

In the fourth quarter of last year, Colditz Company embarked on a major effort to improve...

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 controller’s office has gathered the following year-end data to assess the results of this effort: Current Year Prior Year Units manufactured and sold 27,000 22,500 Selling price of the product $ 52 $ 52 Direct materials used (pounds) 15,200...

In the fourth quarter of last year, Colditz Company embarked on a major effort to improve...

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 controller’s office has gathered the following year-end data to assess the results of this effort: Current Year Prior Year Units manufactured and sold 24,000 18,000 Selling price of the product $ 59 $ 59 Direct materials used (pounds) 15,900...

Rossini Company has budgeted production for next year as follows: Quarter First Second Third Fourth Units...

Rossini Company has budgeted production for next year as follows: Quarter First Second Third Fourth Units to be sold 53,400 80,200 94,000 ? At the beginning of the year, Rossini is expected have 5,340 units of the product. At the end of each quarter, Rossini would like to have an inventory equal to 10% of the sales units of the next quarter. How many units should Rossini produce in the second quarter? A. 80,200 units B. 81,580 units C. 56,080...

Required: Prepare a master budget for the San Jacinto Emporium Company for the fourth quarter of...

Required: Prepare a master budget for the San Jacinto Emporium Company for the fourth quarter of 2017. The following component budgets must be included: 1. Sales Budget 2. Cost of Goods Sold, Inventory and Purchases Budget 3. Operating Expense Budget 4. Budgeted Income Statement 5. Schedule of Expected Cash Collections 6. Schedule of Expected Cash Disbursements - Merchandise Purchases 7. Schedule of Expected Cash Disbursements - Operating Expenses 8. Combined Cash Budget The San Jacinto Emporium Company is a merchandising...

E.S. is a 15-year-old girl brought to the clinic for the fourth time in the last...

E.S. is a 15-year-old girl brought to the clinic for the fourth time in the last year with an inflammatory set of lesions on her back and chest, These lesions are surrounded by normal skin. They are highly irritated and the client complains that she can barely stand to wear clothing over these areas. The client’s mother states that this runs in the family. Case Questions Considering the signs and symptoms presented what is the likely diagnosis for E.S.? What...

The AMS technical services department has embarked on a quality improvement effort. Its first project relates...

The AMS technical services department has embarked on a quality improvement effort. Its first project relates to maintaining the target upload speed for its Internet service subscribers. Upload speeds are measured on a standard scale which the target value is 1.0. Data collected over the past year indicate that the upload speed is approximately normally distributed, with a mean of 1.005 and a standard deviation of 0.10. Each day, one upload speed is measured. The upload speed is considered acceptable...

The Tobler Corporation has budgeted production for next year as follows: Quarter First Second Third Fourth...

The Tobler Corporation has budgeted production for next year as follows: Quarter First Second Third Fourth Production in units 10,000 12,000 16,000 14,000 Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,000 pounds. The raw materials inventory at the end of each quarter should equal 20% of the next quarter's production needs. Budgeted purchases of raw materials in the second quarter would be: Multiple Choice 63,200...

Freese, Inc., is in the process of preparing the fourth quarter budget for 2016, and the...

Freese, Inc., is in the process of preparing the fourth quarter budget for 2016, and the following data have been assembled: The company sells a single product at a price of $61 per unit. The estimated sales volume for the next six months is as follows: September 7,800 units October 7,200 units November 8,400 units December 12,000 units January 5,400 units February 6,000 units All sales are on account. The company's collection experience has been that 30% of a month's...

Freese, Inc., is in the process of preparing the fourth quarter budget for 2016, and the...

Freese, Inc., is in the process of preparing the fourth quarter budget for 2016, and the following data have been assembled: The company sells a single product at a price of $70 per unit. The estimated sales volume for the next six months is as follows: September 10,400 units October 9,600 units November 11,200 units December 16,000 units January 7,200 units February 8,000 units All sales are on account. The company's collection experience has been that 30% of a month's...

MANAGING ASHLAND MULTI-COMM SERVICES The AMS technical services department has embarked on a quality improvement effort....

MANAGING ASHLAND MULTI-COMM SERVICES The AMS technical services department has embarked on a quality improvement effort. It’s first project relates to maintaining the target upload speed for its Internet service subscribers. Upload speeds are measured on a standard scale in which the target value is 1.0. Data collected over the past year indicate that the upload speed is approximately normally distributed, with a mean of 1.005 and a standard deviation of 0.10. Each day, one upload speed is measured. The...

Subjects