Ashley Technology Inc. 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: Units manufactured Number of CT140 used Number of direct labor hours spent Cost of CT140 per unit Direct labor wage rate per hour 2019 $ S 750,000 900,000 150,000 156 56 2018 1,000,000 1,050,000 200,000 $ 135 $ 62 Assume that fixed manufacturing costs are $50 million in both 2018 and 2019. Required: 1. Compute the total productivity ratios for 2018 and 2019.
Ashley Technology Inc. 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: Units manufactured Number of CT140 used Number of direct labor hours spent Cost of CT140 per unit Direct labor wage rate per hour 2019 $ S 750,000 900,000 150,000 156 56 2018 1,000,000 1,050,000 200,000 $ 135 $ 62 Assume that fixed manufacturing costs are $50 million in both 2018 and 2019. Required: 1. Compute the total productivity ratios for 2018 and 2019.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Ashley Technology Inc. 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:
Units manufactured
Number of CT140 used
Number of direct labor
hours spent
Cost of CT140 per unit
Direct labor wage rate
per hour
2019
$
S
750,000
900,000
150,000
156
56
2018
1,000,000
1,050,000
200,000
$ 135
$ 62
Assume that fixed manufacturing costs are $50 million in both 2018 and 2019.
Required:
1. Compute the total productivity ratios for 2018 and 2019.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F95bb2b0f-8741-4456-bc1f-95255673d3fb%2Ff095246a-d729-40b1-bdc8-8cbc71d6204c%2Fafkjdde_processed.png&w=3840&q=75)
Transcribed Image Text:Ashley Technology Inc. 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:
Units manufactured
Number of CT140 used
Number of direct labor
hours spent
Cost of CT140 per unit
Direct labor wage rate
per hour
2019
$
S
750,000
900,000
150,000
156
56
2018
1,000,000
1,050,000
200,000
$ 135
$ 62
Assume that fixed manufacturing costs are $50 million in both 2018 and 2019.
Required:
1. Compute the total productivity ratios for 2018 and 2019.
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