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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 10
PROFILE PRODUCTIVITY MEASUREMENT
In 2011, Shawnee Company implements a new process affecting labor and materials. The following reported data are provided to evaluate the effect on the company's productivity:
Required:
1. Calculate the productivity profile for 2010.
2. Calculate the productivity profile for 2011, and comment on the effect of the new production and assembly process.
3. What if the labor hours used in 2011 were 37,500? What does comparison of the 2010 and 2011 profiles now communicate?
In 2011, Shawnee Company implements a new process affecting labor and materials. The following reported data are provided to evaluate the effect on the company's productivity:
Required:
1. Calculate the productivity profile for 2010.
2. Calculate the productivity profile for 2011, and comment on the effect of the new production and assembly process.
3. What if the labor hours used in 2011 were 37,500? What does comparison of the 2010 and 2011 profiles now communicate?
Explanation
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1. Calculation of the productivity profi...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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