Advanced Windows and Doors, a company dedicated to the manufacture of windows and doors for residences and businesses, had last year 15 workers assigned to the manufacture of windows and 20 workers to the manufacture of doors, producing 25,000 windows and 15,000 doors. After a reassignment in the company, whereby 5 workers dedicated to the manufacture of doors switched to the manufacture of windows, the new production was 32,000 windows and 12,000 doors. Calculate:   The productivity of labor for each of the products last year. The productivity of labor for each of the products after reallocation. The labor productivity change after reallocation.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter15: Lean Accounting And Productivity Measurement
Section: Chapter Questions
Problem 3CE: In 20x2, Choctaw Company implements a new process affecting labor and materials. The following...
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  1. Advanced Windows and Doors, a company dedicated to the manufacture of windows and doors for residences and businesses, had last year 15 workers assigned to the manufacture of windows and 20 workers to the manufacture of doors, producing 25,000 windows and 15,000 doors. After a reassignment in the company, whereby 5 workers dedicated to the manufacture of doors switched to the manufacture of windows, the new production was 32,000 windows and 12,000 doors. Calculate:

 

  1. The productivity of labor for each of the products last year.
  2. The productivity of labor for each of the products after reallocation.
  3. The labor productivity change after reallocation.

 

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