a. Compute the labor productivity with the old system (in titles / worker hour). b. Compute the labor productivity with the new system (in titles / worker hour). c. Compute the multifactor productivity with the old system (in titles / dollar).
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Collins Little Company has a staff of 4 employees, each working 8 hours per day at a rate of
$20/hour. Their overhead expenses are $200/day. Collins processes and closes on 12 titles
each day. They are considering purchasing a computerized title search system that will allow
the processing of 20 titles per day. With the new system, they could cut their staff to 2
employees working the same hours at the same pay, but their overhead expenses would
double to $400 per day.
a. Compute the labor productivity with the old system (in titles / worker hour).
b. Compute the labor productivity with the new system (in titles / worker hour).
c. Compute the multifactor productivity with the old system (in titles / dollar).
d. Compute the multifactor productivity with the new system (in titles / dollar)
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- Last Year Sales $208,000 $221,000 Cost of goods sold 106,000 116,000 Gross margin 102,000 105,000 Other expenses 49,000 49,000 Net income 53,000 56,000 Finished goods inventory 2,700 5,000 Work-in-process inventory 11,000 8,000 Raw material inventory 5,500 7,000 Total inventory (average for year) 19,200 20,000 Other current assets 93,000 109,000 Other assets 210,000 249,000 Total assets 322,200 378,000 ^THIS YEAR The plant manager, Murat Kristal, at York Technologies makes Aircraft Navigation Systems. He expects you, as the new OM analyst, to provide some insight for performance of the plant. High on his list is an understanding of his inventory…Last Year Sales $208,000 $221,000 Cost of goods sold 106,000 116,000 Gross margin 102,000 105,000 Other expenses 49,000 49,000 Net income 53,000 56,000 Finished goods inventory 2,700 5,000 Work-in-process inventory 11,000 8,000 Raw material inventory 5,500 7,000 Total inventory (average for year) 19,200 20,000 Other current assets 93,000 109,000 Other assets 210,000 249,000 Total assets 322,200 378,000 ^THIS YEAR The plant manager, Murat Kristal, at York Technologies makes Aircraft Navigation Systems. He expects you, as the new OM analyst, to provide some insight for performance of the plant. High on his list is an understanding of his inventory…Plantwide vs. Departmental Overhead Rate Ryan Corporation manufactures auto steering systems. Prime cost and machine time estimates for one unit of the product for the year follow:[LO 4-4]Direct materials $200Direct labor ($12/hour) $300Machine hours 20Job # Direct Materials Direct Labor Overhead TotalT114 $31,500 $16,250 $28,750 $76,500This product requires 15 hours of direct labor in Department A and 10 hours in Department B. Also,it requires 5 machine hours in Department A and 15 machine hours in Department B. Using output asthe activity, the factory overhead costs estimated in these two departments follow:A BVariable cost $150,000 $ 80,000Fixed cost 94,000 163,000Management expects the firm to produce 1,000 units during the year.Required1. Assume that factory overhead was applied on the basis of direct labor hours. Compute the predetermined plantwide factory overhead rate.2. If factory overhead were applied on the basis of machine hours, what would be the plantwide overheadrate?3.…
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- Please do not give solution in image format thanku A business incurs the following costs: •Labor: $145/unit•Materials: $75/unit•Rent: $450,000/month Assume the firm produces 2 million units per month. The total variable cost, per month, is ____ million. The total fixed cost, per month, is ____ million. The total cost is ____ million.The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor utilization, and product profitability: Labor-Hours Required Department A B с (hours/unit) Product 1 Product 2 Hours Available Production 1.00 0.30 Profit contribution/unit $30.00 0.20 38.27 0.35 0.20 0.50 $15.00 (a) Develop a linear programming model of the Hartman Company problem. Solve the model to determine the optimal production quantities of products 1 and 2. If required, round your answer to two decimal places. Product 1 Product 2 69.77 M 95 72.09 38 50 (b) In computing the profit contribution per unit, management does not deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for overtime? Dept A What is the upper limit of what…Problem Answer ALL questions from this section. Write your answers on the supplied answer sheet. Show sufficient work. If necessary, round intermediate calculations and final answers to three decimal places. J 1. The manager of a crew that installs carpeting has tracked the crew's output over the past several we eks, obtaining these figures: Week 10 20 30 43 50 6 Crew Size تمه 30 45 Yards Installed 96- 72- 92- 50, 699 52- 20 39 2₂ Compute the labor productivity for each of the weeks. On the basis of your calculations, what can you conclude about crew size and productivity?