Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part-DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Fast Wire Incorporated for 2021 and 2022 relative to the insertion of DTV-12. Number of phones manufactured Units of DTV-12 used Direct labor hours for DTV-12 insertion Total cost of DTV-12 units Direct labor wage rate per hour 2021 2022 600,000 780,000 960,000 1,072,500 1,800 2,600 $1,443,750 $2,333,750 $67 $82 The partial operational productivity ratio of DTV-12 in 2022 is:

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling
device is a very delicate part-DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the
part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however.
The following are the operating data of Fast Wire Incorporated for 2021 and 2022 relative to the insertion of DTV-12.
2021
2022
Number of phones manufactured 600,000
780,000
Units of DTV-12 used
960,000
1,072,500
Direct labor hours for DTV-12 insertion
1,800
2,600
Total cost of DTV-12 units
$1,443,750 $2,333,750
Direct labor wage rate per hour
$67
$82
The partial operational productivity ratio of DTV-12 in 2022 is:
Transcribed Image Text:Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part-DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Fast Wire Incorporated for 2021 and 2022 relative to the insertion of DTV-12. 2021 2022 Number of phones manufactured 600,000 780,000 Units of DTV-12 used 960,000 1,072,500 Direct labor hours for DTV-12 insertion 1,800 2,600 Total cost of DTV-12 units $1,443,750 $2,333,750 Direct labor wage rate per hour $67 $82 The partial operational productivity ratio of DTV-12 in 2022 is:
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