Cost Management
Cost Management
8th Edition
ISBN: 9781259917028
Author: BLOCHER, Edward
Publisher: Mcgraw-hill Education,
Question
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Chapter 16, Problem 43P

1)

To determine

Compute the partial operational productivity for both direct material and direct labor for each of the 2 years.

2)

To determine

Draw the conclusions about the firm’s productivity in the year 2019 relative to 2018.

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Question-Accounting: During its first year of operations, Gautam Company paid $12,385 for direct materials and $10,600 for production workers' wages. Lease payments and utilities on the production facilities amounted to $9,600 while general, selling, and administrative expenses totaled $3,900. The company produced 6,650 units and sold 4,100 units at a price of $7.40 a unit. What is the amount of gross margin for the first year?
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