Grader Company manufactures road graders. Because its managers all have engineering backgrounds, it prefers nonfinancial information for its decision-making models. Therefore, it requires that the accountants gather data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of a mobile paver:

Required:
a. What is the partial productivity for direct materials for each year?
b. What is the partial productivity for direct manufacturing labour for each year?
c. What is the total factor productivity for each year?

Question

Grader Company manufactures road graders. Because its managers all have engineering backgrounds, it prefers nonfinancial information for its decision-making models. Therefore, it requires that the accountants gather data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of a mobile paver:
  
Required:
a. What is the partial productivity for direct materials for each year?
b. What is the partial productivity for direct manufacturing labour for each year?
c. What is the total factor productivity for each year?

Quizplus · Accepted Answer

The Answer of Grader Company manufactures road graders. Because its managers all have engineering backgrounds, it prefers nonfinancial information for its decision-making models. Therefore, it requires that the accountants gather data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of a mobile paver:
  
Required:
a. What is the partial productivity for direct materials for each year?
b. What is the partial productivity for direct manufacturing labour for each year?
c. What is the total factor productivity for each year?

Grader Company Manufactures Road Graders