Lake Company manufactures small boats. Because its managers all have engineering backgrounds, they prefer nonfinancial information for their decision-making models. Therefore, they require the accountants gather data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of a small boat.

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

Lake Company manufactures small boats. Because its managers all have engineering backgrounds, they prefer nonfinancial information for their decision-making models. Therefore, they require the accountants gather data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of a small boat.
  
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 Lake Company manufactures small boats. Because its managers all have engineering backgrounds, they prefer nonfinancial information for their decision-making models. Therefore, they require the accountants gather data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of a small boat.
  
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?

Lake Company Manufactures Small Boats