2. Wonder Makers, Inc. has the following data for the first two quarters of year

Question

2. Wonder Makers, Inc. has the following data for the first two quarters of year 2018:Quarter 1, 2018Quarter 2, 2018Output:Sales250,000 units sold at $10 per unit270,000 units sold at $10 per unitLabor3,000 labor-hours at $15 per labor-hour3,300 labor-hours at $15 per labor-hourMachine4,000 machine-hours at $8 per machine-hour5,000 machine-hours at $8 per machine-hourRaw Materials3,500 pounds at $6 per pound4,000 pounds at $6 per poundEnergy6,000 kWhs at $0.75 per kWh6,500 kWhs at $0.75 per kWhInputs:Other Costs$2,000$1,800a. Calculate the labor productivities (expressed in sales dollars earned per labor-hour) in quarters 1 and 2. What is the percentage change in labor productivity from quarter 1 to quarter 2?b. Calculate the machine productivities (expressed in units sold per machine-hour) in quarters 1 and 2. What is the percentage change in machine productivity from quarter 1 to quarter 2?c. Calculate the material productivities (expressed in units sold per dollar invested in raw materials) in quarters 1 and 2. What is the percentage change in material productivity from quarter 1 to quarter 2?d. Calculate the energy productivities (expressed in sales dollars earned per dollarinvested in

Explanation / Answer

Labor productivity in dollar terms Q1 = 250000*10 / 3000 = 833.33

Labor productivity in dollar terms Q2 = 27000*10 / 3300 = 818.18

% change = (833.33 - 818.88)/ 833.33 = 1.82 % (reduction)

Units sold per machine hour Q1 = 250000 / 4000 = 62.5

Units sold per machine hour Q2 = 270000/ 5000 = 54

% Change = (62.5 - 54) / 62.5 = 13.6%

Material productivity unit sold per dollar invested in raw material Q1 = 250000 / (3500*6) = 11.90

Material productivity unit sold per dollar invested in raw material Q 2 = 270000 / (4000*6) =11.25

% Change = (11.90 - 11.25) / 11.90 = 5.46%

Note - Data missed for energy productivities.

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