please solve with full work Interperiod Measurement of Productivity, Profit-Linked MeasurementHelena Company needs to increase its profits and so has embarked on a program to increase its overall productivity. After one year ofoperation, Kent Olson, manager of the Columbus plant, reported the following results for the base period and its most recent year ofoperations:20x120x2Output184,300217,000Power (quantity used)23,03810,600Materials (quantity used)46,07547,800Suppose the following input prices are provided for each year:20x120x2$5Unit price (power).$42019Unit price (materials)1012Unit selling price Required:1. Compute the profit-linked productivity measure. By how much did profits increase due to productivity? If required, round yourintermediate calcuiations and final answers to the nearest dollar amount.2. Calculate the price-recovery component for 20x2. If required, round your intermediate calculations and final answers to thenearest dollar amount.

Productivity measures are undertaken to improve the overall profitability in an entity, these…

uired: 1. Compute the profit-linked productivity measure. By how much did profits increase due to productivity? If required, round your intermediate calculations and final answers to the nearest dollar amount. 2. Calculate the price-recovery component for 20x2. If required, round your intermediate calculations and final answers to the nearest dollar amount.

uired: 1. Compute the profit-linked productivity measure. By how much did profits increase due to productivity? If required, round your intermediate calculations and final answers to the nearest dollar amount. 2. Calculate the price-recovery component for 20x2. If required, round your intermediate calculations and final answers to the nearest dollar amount.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter13: Emerging Topics In Managerial Accounting

Section: Chapter Questions

Problem 42E: The controller of Emery, Inc. has computed quality costs as a percentage of sales for the past 5...

See similar textbooks

Similar questions

Interperiod Measurement of Productivity, Profit-Linked Measurement Helena Company needs to increase its profits and so has embarked on a program to Increase its overall productivity. After one year of operation, Kent Olson, manager of the Columbus plant, reported the following results for the base period and its most recent year of operations: 20x1 20x2 Output 184,300 217,000 Power (quantity used) 23,038 10,600 Materials (quantity used) 46,075 47,800 Suppose the following Input prices are provided for each year: 20x1 20x2 $ 4 $ 5 Unit price (power). 20 19 Unit price (materials) 10 12 Unit selling price Required: 1. Compute the profit-linked productivity measure. By how much did profits increase due to productivity? If required, round your intermediate calculations and final answers to the nearest dollar amount. 2. Calculate the price-recovery component for 20x2. If required, round your intermediate calculations and final answers to the nearest dollar amount.
Interperiod Measurement of Productivity, Profit-Linked Measurement Helena Company needs to increase its profits and so has embarked on a program to increase its overall productivity. After one year of operation, Kent Olson, manager of the Columbus plant, reported the following results for the base period and its most recent year of operations: 20x1 Unit price (power) Unit price (materials) Unit selling price. Required: Output 185,700 216,000 Power (quantity used) 18,570 11,100 Materials (quantity used) 46,425 47,900 Suppose the following input prices are provided for each year: 20x2 20x1 $2 18 8 20x2 $3 17 10 1. Compute the profit-linked productivity measure. By how much did profits increase due to productivity? If required, round your intermediate calculations and final answers to the nearest dollar amount. 2. Calculate the price-recovery component for 20x2. If required, round your intermediate calculations and final answers to the nearest dollar amount. $
Interperlod Measurement of Productivity, Profit-Linked Measurement Helena Company needs to increase its profits and so has embarked on a program to increase its overall productivity. After one year of operation, Kent Olson, manager of the Columbus plant, reported the following results for the base period and its most recent year of operations: 20x1 20x2 Output 184,500 217,200 Power (quantity used) 18,450 10,700 Materials (quantity used) 36,900 47,400 Suppose the following input prices are provided for each year: 20x1 20x2 Unit price (power) $ 2 $ 3 Unit price (materials) 18 17 Unit selling price Required: 1. Compute the profit-linked productivity measure. By how much did profits increase due to productivity? If required, round your intermediate calculations and final answers to the nearest dollar amount. 34,260 2. Calculate the price-recovery component for 20x2. If required, round your intermediate calculations and final answers to the nearest dollar amount.
HW Interperiod Measurement of Productivity, Profit-Linked Measurement Print Item Helena Company needs to increase its profits and so has embarked on a program to increase its overall productivity. After one year of operation, Kent Olson, manager of the Columbus plant, reported the following results for the base period and its most recent year of operations: Output Power (quantity used) Materials (quantity used) 20x1 20x2 185,700 217,800 18,570 11,100 37,140 47,100 Suppose the following input prices are provided for each year: Unit price (power) Unit price (materials) 20x1 20x2 $4 16 $5 15 6 8 Unit selling price Required: 1. Compute the profit-linked productivity measure. By how much did profits increase due to productivity? If required, round your intermediate calculations and final answers to the nearest dollar amount. 2. Calculate the price-recovery component for 20x2. If required, round your intermediate calculations and final answers to the nearest dollar amount.
At the end of Year 1, Cardigan Corporation implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of Year 2, the president of the company wants an assessment of the changes on the company's productivity. The data needed for the assessment are as follows: Year 1 Year 2 Output 20,000 24,000 Output prices $10 $10 Change in profits $22,200 Profit-linked measurements: Materials $7,200 Labor 10,500 Power (1,500) What is the price-recovery component? a. $6,000 b. $(6,000) c. $22,200 d. $16,200
X Corp is in the process of improving its efficiency / productivity through implementation of new technology and equipment’s. At the end of the year, the company provided the following data: production in units is 50,000 with selling price of P 10/ unit. The relevant inputs are as follows: Materials (in unit) of 25,000 with cost of P 2.00 per unit; labor hours of 5,000 hrs and labor rate of P 10/ hour. Compute the productivity ratio of the company as to materials. • 50% • 200 • 2 • 10
X Corp is in the process of improving its efficiency / productivity through implementation of new technology and equipment’s. At the end of the year, the company provided the following data: production in units is 50,000 with selling price of P 10/ unit. The relevant inputs are as follows: Materials (in unit) of 25,000 with cost of P 2.00 per unit; labor hours of 5,000 hrs and labor rate of P 10/ hour. Compute the productivity ratio of the company as to materials. choices: 2 10 200 50%
The controller of Emery, Inc. has computed quality costs as a percentage of sales for the past 5 years (20X1 was the first year the company implemented a quality improvement program). This information is as follows: Required: 1. Prepare a trend graph for total quality costs. Comment on what the graph has to say about the success of the quality improvement program. 2. Prepare a graph that shows the trend for each quality cost category. What does the graph have to say about the success of the quality improvement program? Does this graph supply more insight than the total cost trend graph does? 3. Prepare a graph that compares the trend in relative control costs versus relative failure costs. Comment on the significance of this trend.
At the end of 20x1, Mejorar Company implemented a low-cost strategy to improve its competitive position. Its objective was to become the low-cost producer in its industry. A Balanced Scorecard was developed to guide the company toward this objective. To lower costs, Mejorar undertook a number of improvement activities such as JIT production, total quality management, and activity-based management. Now, after two years of operation, the president of Mejorar wants some assessment of the achievements. To help provide this assessment, the following information on one product has been gathered: Required: 1. Compute the following measures for 20x1 and 20x3: a. Actual velocity and cycle time b. Percentage of total revenue from new customers (assume one unit per customer) c. Percentage of very satisfied customers (assume each customer purchases one unit) d. Market share e. Percentage change in actual product cost (for 20x3 only) f. Percentage change in days of inventory (for 20x3 only) g. Defective units as a percentage of total units produced h. Total hours of training i. Suggestions per production worker j. Total revenue k. Number of new customers 2. For the measures listed in Requirement 1, list likely strategic objectives, classified according to the four Balance Scorecard perspectives. Assume there is one measure per objective.
Merkley Company, a manufacturer of machine parts, implemented lean manufacturing at the end of 20X1. Three value streams were established: one for new product development and two order fulfillment value streams. One of the value streams set a goal to increase its ROS to 45% of sales by the end of the year. During the year, the value stream made significant improvements in several areas. The Box Scorecard below was prepared, with performance measures for the beginning of the year, midyear, and end of year. Although the members of the value stream were pleased with their progress, they were disappointed in the financial results. They were still far from the targeted ROS of 45%. They were also puzzled as to why the improvements made did not translate into significantly improved financial performance. Required: 1. From the scorecard, what was the focus of the value-stream team for the first 6 months? The second 6 months? What are the implications of these changes? 2. Using information from the scorecard, offer an explanation for why the financial results were not as good as expected.
Javier Company has sales of 8 million and quality costs of 1,600,000. The company is embarking on a major quality improvement program. During the next three years, Javier intends to attack failure costs by increasing its appraisal and prevention costs. The right prevention activities will be selected, and appraisal costs will be reduced according to the results achieved. For the coming year, management is considering six specific activities: quality training, process control, product inspection, supplier evaluation, prototype testing, and redesign of two major products. To encourage managers to focus on reducing non-value-added quality costs and select the right activities, a bonus pool is established relating to reduction of quality costs. The bonus pool is equal to 10 percent of the total reduction in quality costs. Current quality costs and the costs of these six activities are given in the following table. Each activity is added sequentially so that its effect on the cost categories can be assessed. For example, after quality training is added, the control costs increase to 320,000, and the failure costs drop to 1,040,000. Even though the activities are presented sequentially, they are totally independent of each other. Thus, only beneficial activities need be selected. Required: 1. Identify the control activities that should be implemented, and calculate the total quality costs associated with this selection. Assume that an activity is selected only if it increases the bonus pool. 2. Given the activities selected in Requirement 1, calculate the following: a. The reduction in total quality costs b. The percentage distribution for control and failure costs c. The amount for this years bonus pool 3. Suppose that a quality engineer complained about the gainsharing incentive system. Basically, he argued that the bonus should be based only on reductions of failure and appraisal costs. In this way, investment in prevention activities would be encouraged, and eventually, failure and appraisal costs would be eliminated. After eliminating the non-value-added costs, focus could then be placed on the level of prevention costs. If this approach were adopted, what activities would be selected? Do you agree or disagree with this approach? Explain.
Norris Company implemented a quality improvement program and tracked the following for the 5 years: By cost category of sales for the same period of time: Required: 1. Prepare a bar graph (hat reveals the trend in quality cost as a percentage of sales (time on horizontal axis and percentages on the vertical). Comment on the message of the graph. 2. Prepare a bar graph for each cost category as a percentage of sales. What does this graph tell you?