Grader Company manufactures road graders.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 paver:
$\begin{array}{lrr}&2011&2012\
\text { Units produced and sold } & 6,800 & 5,600 \
\text { Direct manufacture labor-hours } & 136,000 & 115,200 \
\text { Direct materials used (tons) } & 29,000 & 24,400 \
\text { Direct manufacture cost per hour } & \$ 21 & \$ 22 \
\text { Direct materials cost per ton } & \$ 431 & \$ 443
\end{array}$ Required:
a.What is the partial productivity for direct materials for each year?
b.What is the partial productivity for direct manufacturing labor 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,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 paver:
 $\begin{array}{lrr}&2011&2012\
\text { Units produced and sold } & 6,800 & 5,600 \
\text { Direct manufacture labor-hours } & 136,000 & 115,200 \
\text { Direct materials used (tons) } & 29,000 & 24,400 \
\text { Direct manufacture cost per hour } & \$ 21 & \$ 22 \
\text { Direct materials cost per ton } & \$ 431 & \$ 443
\end{array}$ Required:
a.What is the partial productivity for direct materials for each year?
b.What is the partial productivity for direct manufacturing labor 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,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 paver:
 $\begin{array}{lrr}&2011&2012\
\text { Units produced and sold } & 6,800 & 5,600 \
\text { Direct manufacture labor-hours } & 136,000 & 115,200 \
\text { Direct materials used (tons) } & 29,000 & 24,400 \
\text { Direct manufacture cost per hour } & \$ 21 & \$ 22 \
\text { Direct materials cost per ton } & \$ 431 & \$ 443
\end{array}$ Required:
a.What is the partial productivity for direct materials for each year?
b.What is the partial productivity for direct manufacturing labor for each year?
c.What is the total factor productivity for each year?

Grader Company Manufactures Road Graders Required: A

Grader Company Manufactures Road Graders Required:
A