Problem 18-57 (Static) Productivity Measures (LO 18-6) Terrell Industries produces a single product at its...
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Accounting
Problem 18-57 (Static) Productivity Measures (LO 18-6)
Terrell Industries produces a single product at its Roosevelt facility. The product has two main inputs, metal and labor, with additional costs being included in manufacturing overhead. The plant carries neither work-in-process nor finished goods inventories. Information from the previous four quarters of production follows:
Q1
Q2
Q3
Q4
Metal input (pounds)
194,000
210,000
240,000
230,000
Labor input (hours)
9,700
10,560
12,500
11,500
Sales (pounds)
164,900
184,800
204,000
190,900
Average price of metal per pound
$ 0.62
$ 0.66
$ 0.70
$ 0.65
Average wage rate per hour
32.00
34.00
28.00
30.00
Average sales price per pound
6.20
5.95
6.10
6.00
Manufacturing overhead (total)
387,224
418,660
397,000
421,820
Required:
a. Compute the partial productivity measures for metal for the four quarters.
b. Compute the partial productivity measures for labor for the four quarters.
c. Compute the total factor productivity for the four quarters.
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