Interperiod Measurement of Productivity, Profit-Linked Measurement Helena Company needs to increase its profits and so has embarked on a program to increase its overall productivity. After one year of operation, Kent Olson, manager of the Columbus plant, reported the following results for the base period and its most recent year of operations: 20x2 Output 217,800 Power (quantity used) 10,900 Materials (quantity used) 47,200 Suppose the following input prices are provided for each year: 20x1 $2 20 10 Unit price (power) Unit price (materials) Unit selling price Required: 20x1 185,400 23,175 46,350 20x2 $3 19 12 1. Compute the profit-linked productivity measure. By how much did profits increase due to productivity? If required, round your intermediate calculations and final answers to the nearest dollar amount. 2. Calculate the price-recovery component for 20x2. If required, round your intermediate calculations and final answers to the nearest dollar amount.

Interperiod Measurement of Productivity, Profit-Linked Measurement Helena Company needs to increase its profits and so has embarked on a program to increase its overall productivity. After one year of operation, Kent Olson, manager of the Columbus plant, reported the following results for the base period and its most recent year of operations: 20x2 Output 217,800 Power (quantity used) 10,900 Materials (quantity used) 47,200 Suppose the following input prices are provided for each year: 20x1 $2 20 10 Unit price (power) Unit price (materials) Unit selling price Required: 20x1 185,400 23,175 46,350 20x2 $3 19 12 1. Compute the profit-linked productivity measure. By how much did profits increase due to productivity? If required, round your intermediate calculations and final answers to the nearest dollar amount. 2. Calculate the price-recovery component for 20x2. If required, round your intermediate calculations and final answers to the nearest dollar amount.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter13: The Balanced Scorecard: Strategic-based Control

Section: Chapter Questions

Problem 21P: At the end of 20x1, Mejorar Company implemented a low-cost strategy to improve its competitive...

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Helena Company needs to increase its profits and so has embarked on a program to increase its overall productivity. After one year of operation, Kent Olson, manager of the Columbus plant, reported the following results for the base period and its most recent year of operations: 20x1 20x2 Output 184,500 217,000 Power (quantity used) 23,063 11,000 Materials (quantity used) 46,125 47,100 Suppose the following input prices are provided for each year: 20x1 20x2 Unit price (power) $ 6 $ 7 Unit price (materials) 20 19 Unit selling price 8 10 Required: 1. Compute the profit-linked productivity measure. By how much did profits increase due to productivity? If required, round your intermediate calculations and final answers to the nearest dollar amount. 2. Calculate the price-recovery component for 20x2. If required, round your intermediate calculations and final answers to the nearest…
Profit-Linked Productivity Measurement In 20x2, Choctaw Company implements a new process affecting labor and materials. Choctaw Company provides the following information so that total productivity can be valued: 20x1 20x2 Number of units produced 570,000 480,000 Labor hours used 190,000 240,000 Materials used (lbs.) 2,850,000 1,600,000 Unit selling price $22 $24 Wages per labor hour $12 $14 Cost per pound of material $3.40 $3.50 Cost of inputs in 20x2, assuming no productivity change from 20x1 to 20x2. Cost of labor $2,240,000 Cost of materials $8,400,000 Total PQ cost $10,640,000 The actual cost of inputs for 20x2. Cost of labor $3,360,000 Cost of materials $5,600,000 Total current cost $8,960,000 The net value of the productivity changes is $1,680,000 Required: 1. How much profit change is attributable to each input's productivity change? If an item is negative, use a minus (-) sign to indicate. Labor productivity change $fill in the…