Prevost Chemicals manufactures an industrial solvent at its only processing plant. A liquid chemical and labor are the two primary inputs. All other resources are included in manufacturing overhead. The plant never has any work-in-process or finished goods inventories. Information from the previous four periods of production follows: Period 1 Period 2 Period 3 Period 4 Chemical input (gallons) 125,000 129,280 128,000 120,000 Labor input (hours) 12,500 11,200 15,000 10,100 Solvent sales (gallons) 110,000 113,120 120,000 103,020 Average price of chemical per gallon $ 2.00 $ 2.10 $ 1.95 $ 2.25 Average wage rate per hour 28.00 26.00 31.00 34.00 Average sales price per gallon 10.26 10.00 9.80 10.60 Manufacturing overhead (total) 236,000 245,312 245,400 243,080 Required: a. Compute the partial productivity measures for chemical for the four periods. b. Compute the partial productivity measures for labor for the four periods.
Prevost Chemicals manufactures an industrial solvent at its only processing plant. A liquid chemical and labor are the two primary inputs. All other resources are included in manufacturing overhead. The plant never has any work-in-process or finished goods inventories. Information from the previous four periods of production follows: Period 1 Period 2 Period 3 Period 4 Chemical input (gallons) 125,000 129,280 128,000 120,000 Labor input (hours) 12,500 11,200 15,000 10,100 Solvent sales (gallons) 110,000 113,120 120,000 103,020 Average price of chemical per gallon $ 2.00 $ 2.10 $ 1.95 $ 2.25 Average wage rate per hour 28.00 26.00 31.00 34.00 Average sales price per gallon 10.26 10.00 9.80 10.60 Manufacturing overhead (total) 236,000 245,312 245,400 243,080 Required: a. Compute the partial productivity measures for chemical for the four periods. b. Compute the partial productivity measures for labor for the four periods.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Prevost Chemicals manufactures an industrial solvent at its only processing plant. A liquid chemical and labor are the two primary inputs. All other resources are included in manufacturing overhead. The plant never has any work-in-process or finished goods inventories. Information from the previous four periods of production follows:
| Period 1 | Period 2 | Period 3 | Period 4 | |
|---|---|---|---|---|
| Chemical input (gallons) | 125,000 | 129,280 | 128,000 | 120,000 |
| Labor input (hours) | 12,500 | 11,200 | 15,000 | 10,100 |
| Solvent sales (gallons) | 110,000 | 113,120 | 120,000 | 103,020 |
| Average price of chemical per gallon | $ 2.00 | $ 2.10 | $ 1.95 | $ 2.25 |
| Average wage rate per hour | 28.00 | 26.00 | 31.00 | 34.00 |
| Average sales price per gallon | 10.26 | 10.00 | 9.80 | 10.60 |
| Manufacturing overhead (total) | 236,000 | 245,312 | 245,400 | 243,080 |
Required:
a. Compute the partial productivity measures for chemical for the four periods.
b. Compute the partial productivity measures for labor for the four periods.
Transcribed Image Text:Required A Required B Required C
Compute the partial productivity measures for chemical for the four periods.
Partial Chemical
Productivity
Period
Period 1
Period 2
Period 3
Period 4
< Required A
Required B >
Transcribed Image Text:Required A
Compute the partial productivity measures for labor for the four periods.
Partial Labor
Productivity
Period
Required B Required C
Period 1
Period 2
Period 3
Period 4
< Required A
Required C
>
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