18.4 As the cost accounting manager at Cambria Chemicals (CC), you are responsib

Question

18.4

As the cost accounting manager at Cambria Chemicals (CC), you are responsible for compiling and reporting various performance measures to the senior managers. The company instituted many efficiency improvement programs recently, and the CFO has asked you to measure and report partial productivity for both labor and materials. Data for the last two years follow: Gallons input (thousands) Labor-hours (thousands) Gallons of output (thousands) 9,300 6,900 1,200 9,200 Required: a. Compute the partial productivity measures for labor for year 1 and year 2. (Round your answers to 3 decimal places.) Labor Year Productiv Year 1 Year 2 b. Compute the partial productivity measures for material for year 1 and year 2. (Round your answers to 3 decimal places.) Partial Materia Year Year 1 Year 2 Prod ductivit

Explanation / Answer

Ans. 1. Calculation of partial productivity measures for labor = Actua Output/Labour hours

partial productivity measures for labour

Year 1        = 11200/9300 = 1.20 units per labour hour

year 2         = 9200/6900 = 1.33 units per labour hour

2. Calculation of partial productivity measures for material (output/input)

Year 1 = 11200/9400 =   1.19 units

Year 2 = 9200/8400   =    1.10 units

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