Question

1. 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

Answer 1

(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