1. Compute the total productivity ratios for 2021 and 2022. Assume that fixed manufacturing costs are $51 million in both 2021 and 2022.
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Ashley Technology Incorporated manufactures a scrambling device for cellular telephones. The device’s main component is a delicate part, CT140. CT140 is easily damaged and requires careful handling. Once damaged, it must be discarded. The firm hires only skilled laborers to manufacture and install CT140; however, some are still damaged. Robotic instruments process all other parts. Ashley’s operating data for 2 years are as follows:
| 2022 | 2021 | |
|---|---|---|
| Units manufactured | 800,000 | 1,050,000 |
| Number of CT140 used | 910,000 | 1,060,000 |
| Number of direct labor hours spent | 160,000 | 210,000 |
| Cost of CT140 per unit | $ 157 | $ 136 |
| Direct labor wage rate per hour | $ 57 | $ 63 |
Required:
1. Compute the total productivity ratios for 2021 and 2022. Assume that fixed
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