(Solved) Power Company has been unhappy with the financial accounting variances that its cost accounting syst

Power Company has been unhappy with the financial accounting variances that its cost accounting system has been producing, because its managers believe that there is more to evaluating an operation than just examining accounting numbers. Therefore, it has started gathering data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of remote control units for televisions, radios, and stereo components:

   2011   2012
   Remote control units produced and sold   80,000   100,000
   Direct manufacture labor-hours   12,000   13,200
   Direct materials used (sets)   80,600   100,500
   Direct manufacture cost per hour   $18   $20
   Direct materials cost per set   $31   $32

Required:
a.   What is the partial productivity of direct materials for each year?
b.   What is the partial productivity of direct manufacturing labor for each year?
c.   Did each area improve between 2011 and 2012? Explain.
d.   What will be the projected direct material and labor needs for 2013 if remote control units increase by 12,000 units, assuming Power Company applies the constant returns to scale technology?

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.

Power Company has been unhappy with the financial accounting variances that its cost accounting syst

Cost Accounting

Related Topics