Q24 Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part—DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Fast Wire Incorporated for 2021 and 2022 relative to the insertion of DTV-12.
Q24 Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part—DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Fast Wire Incorporated for 2021 and 2022 relative to the insertion of DTV-12.
Chapter1: Financial Statements And Business Decisions
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Q24
Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part—DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Fast Wire Incorporated for 2021 and 2022 relative to the insertion of DTV-12.
| 2021 | 2022 | |
|---|---|---|
| Number of phones manufactured | 606,000 | 730,000 |
| Units of DTV-12 used | 960,300 | 1,000,000 |
| Direct labor hours for DTV-12 insertion | 1,850 | 2,655 |
| Total cost of DTV-12 units | $ 1,444,000 | $ 2,334,000 |
| Direct labor wage rate per hour | $ 68.50 | $ 84 |
The partial operational productivity ratio of DTV-12 in 2022 is:
Multiple Choice
-
3.00 per unit.
-
0.73 per unit.
-
0.63 per unit.
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3.33 per unit.
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1.92 per unit.
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