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QUESTION 1. Identify applicable key performance objectives and/or measures for the balanced scorecard of Metro Corporation. Explain briefly how your cited objectives/ measures can affect the financial performance of the company. 2. Calculate the productivity component that explains the change in operating income from 20X2 and 20X3.

QUESTION 1. Identify applicable key performance objectives and/or measures for the balanced scorecard of Metro Corporation. Explain briefly how your cited objectives/ measures can affect the financial performance of the company. 2. Calculate the productivity component that explains the change in operating income from 20X2 and 20X3.

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
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1. Identify applicable key performance objectives and/or measures for the balanced scorecard of Metro
Corporation. Explain briefly how your cited objectives/ measures can affect the financial performance
of the company.

2. Calculate the productivity component that explains the change in operating income from 20X2 and
20X3.

Metro Corporation makes a special-purpose machine called "OM" used in the textile industry. Metro has designed the OM machine for 20X3 to be distinct from its competitors with a premium price. It has been regarded as a superior machine. The company presents the following data for the years 20X2 and 20X3. 20X2 20х3 1. Units of OM produced and sold 2. Selling price 3. Direct materials (kilograms) 4. Direct materials cost per kilogram 5. Manufacturing capacity in units of an OM 200 210 P40,000 300,000 P42,000 310,000 P8.50 P8 250 250 6. Total conversion costs P2,000,000 P8,000 P2,025,000 P8,100 7. Conversion costs per unit of capacity 8. Selling and customer-service capacity 9. Total selling and customer-service costs 10. Selling and customer-service capacity cost per customer 11. Design staff 12. Total design costs 13. Design costs per employee 100 customers 95 customers P1,000,000 P10,000 P940,500 P9,900 12 12 P1,200,000 P1,212,000 P100,000 P101,000 Metro produces no defective machines, but it desires to reduce direct materials usage per OM machine in 20X2. Conversion costs in each year depending on production capacity defined in terms of OM units that can be produced, not the actual units of OM produced. Selling and customer-service costs depend on the number of customers that Metro can support, not the actual number of customers the company serves. Metro has 75 customers in 20X2 and 80 customers in 20X3. At the start of each year, management uses its discretion to determine the number of design staff for the year. The design staff and costs have no direct relationship with the quantity of OM produced or the number of customers to whom OM is sold.
Transcribed Image Text:Metro Corporation makes a special-purpose machine called "OM" used in the textile industry. Metro has designed the OM machine for 20X3 to be distinct from its competitors with a premium price. It has been regarded as a superior machine. The company presents the following data for the years 20X2 and 20X3. 20X2 20х3 1. Units of OM produced and sold 2. Selling price 3. Direct materials (kilograms) 4. Direct materials cost per kilogram 5. Manufacturing capacity in units of an OM 200 210 P40,000 300,000 P42,000 310,000 P8.50 P8 250 250 6. Total conversion costs P2,000,000 P8,000 P2,025,000 P8,100 7. Conversion costs per unit of capacity 8. Selling and customer-service capacity 9. Total selling and customer-service costs 10. Selling and customer-service capacity cost per customer 11. Design staff 12. Total design costs 13. Design costs per employee 100 customers 95 customers P1,000,000 P10,000 P940,500 P9,900 12 12 P1,200,000 P1,212,000 P100,000 P101,000 Metro produces no defective machines, but it desires to reduce direct materials usage per OM machine in 20X2. Conversion costs in each year depending on production capacity defined in terms of OM units that can be produced, not the actual units of OM produced. Selling and customer-service costs depend on the number of customers that Metro can support, not the actual number of customers the company serves. Metro has 75 customers in 20X2 and 80 customers in 20X3. At the start of each year, management uses its discretion to determine the number of design staff for the year. The design staff and costs have no direct relationship with the quantity of OM produced or the number of customers to whom OM is sold.
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