Question

In: Accounting

Brassard Company manufactured 1,500 units of its only product during 2019. The inputs for this production...

Brassard Company manufactured 1,500 units of its only product during 2019. The inputs for this production are as follows:

450 pounds of Raw Material G at $1.50 per pound

300 pounds of Raw Material H at cost of $2,75 per pound

300 direct labor hours at $20 per hour

The firm manufactured 1,800 units of the same product in 2017 with the following inputs:

500 pounds of Raw Material G at a cost of $1,20 per pound

360 pounds of Raw Material H at a cost of $2.50 per pound

400 direct labor hours at $18 per hour

Required:

-The 2017 and 2018 operational partial productivity of Raw Material G and Raw Material H

-The 2017 and 2018 direct labor operational partial productivity

- The 2017 and 2018 financial partial productivity of Raw Material G and Raw Material H

-The 2017 and 2018 financial partial productivity of direct labor

-The total productivity ratio in 2017 and 2018

Expert Solution

(I)

The 2017 operational partial productivity of Raw Material G

= 1800/500

= 3.6

The 2017 operational partial productivity of Raw Material H

= 1800/360

= 5

The 2018 operational partial productivity of Raw Material G

= 1500/450

= 3.33

The 2018 operational partial productivity of Raw Material H

= 1500/300

= 5

(II).

The 2017 direct labor operational partial productivity

= 1800/400

= 4.5

The 2018 direct labor operational partial productivity

= 1500/300

= 5

(III).

The 2017 financial partial productivity of Raw Material G

= 1800 / (500 * 1.2)

= 3

The 2017 financial partial productivity of Raw Material H

= 1800 / (360*2.5 )

= 2

The 2018 financial partial productivity of Raw Material G

= 1500 / (450 * 1.5)

= 2.22

The 2018 financial partial productivity of Raw Material H

= 1500 / (300*2.75 )

= 1.818

(IV)

The 2017 financial partial productivity of direct labor

= 1800 / (400*18)

= 0.25

The 2018 financial partial productivity of direct labor

= 1500 / (300*20)

= 0.25

(V)

The total productivity ratio in 2017

= 1,800/[(500 x 1.20) + (360x 2.50) + (400x 18)]

= 0.21

The total productivity ratio in 2018

= 1,500/[(450 x 1.50) + (300x 2.75) + (300x 20)]

= 0.20

ekkarill92 answered 2 years ago

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