Ternes Manufacturing produces metal products primarily used in the construction industry. The three main inputs in production are materials (metal), labor, and overhead. Data for the previous three reporting periods follow: Materials cost Labor cost Overhead Value of product produced Period 3 $ 62,000 41,150 54,050 148,930 Period 2 $ 76,500 50,820 59,600 190,504 Period 1 $ 71,750 47,200 57,850 175,604 Required: a. Compute the total factor productivity for the previous three reporting periods. Note: Round your answers to 2 decimal places.
Ternes Manufacturing produces metal products primarily used in the construction industry. The three main inputs in production are materials (metal), labor, and overhead. Data for the previous three reporting periods follow: Materials cost Labor cost Overhead Value of product produced Period 3 $ 62,000 41,150 54,050 148,930 Period 2 $ 76,500 50,820 59,600 190,504 Period 1 $ 71,750 47,200 57,850 175,604 Required: a. Compute the total factor productivity for the previous three reporting periods. Note: Round your answers to 2 decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Exercise 18-45 (Algo) Total Factor Productivity (LO 18-6)
Ternes Manufacturing produces metal products primarily used in the construction industry. The three main inputs in production are
materials (metal), labor, and overhead. Data for the previous three reporting periods follow:
Materials cost
Labor cost
Overhead.
Value of product produced
Period
Period 3
Period 2
Period 1
Period 3
$ 62,000
41,150
54,050
148,930
Required:
a. Compute the total factor productivity for the previous three reporting periods.
Note: Round your answers to 2 decimal places.
Total Factor
Productivity
Period 2
$ 76,500
50,820
59,600
190,504
Period 1
$ 71,750
47,200
57,850
175,604
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