XYZ added 12 additional workers to its manufacturing plant, which increased the daily payroll from $12,530 to $14,686, but output went from 1,091 to 4,898 units per day. What was the Percentage Productivity Increase from this move? (Show your answer in decimal for to 3 places -- if you calculated the answer to be 12.3% then input 0.123).
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
XYZ added 12 additional workers to its manufacturing plant, which increased the daily payroll from $12,530 to $14,686, but output went from 1,091 to 4,898 units per day. What was the Percentage Productivity Increase from this move? (Show your answer in decimal for to 3 places -- if you calculated the answer to be 12.3% then input 0.123).
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