Basics of Productivity Measurement Holbrook Company gathered the following data for the past two years: Base Year Current Year Output 910,000 1,080,000 Output...

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Accounting

Basics of Productivity Measurement
Holbrook Company gathered the following data for the past twoyears:
Base Year Current Year
Output 910,000 1,080,000
Output prices $14 $14
Input quantities:
   Materials (lbs.) 182,000 1,080,000
   Labor (hrs.) 91,000 540,000
Input prices:
   Materials $4 $5
   Labor $8 $8
Required:
1. Prepare a productivity profile for eachyear. If required, round your answers to two decimal places.
Holbrook Company
Productivity Profile
Base Year Current Year
Materials productivity ratio
Labor productivity ratio
2. Prepare partial income statements for eachyear.
Holbrook Company
Partial Income Statements
Base Year Current Year
Sales $ $
Materials
Labor
Gross profit $ $
Calculate the total change in income. If the change is negative,enter answer using a minus sign.
$

3. Calculate the change in profits attributable toproductivity changes. If the change is negative, enter answer usinga minus sign. If required, round your intermediate calculations tothe nearest dollar.
$

4. Calculate the price-recovery component. Ifrequired, round your intermediate calculations to the nearestdollar.
$

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4.0 Ratings (774 Votes)

1 Please find table below showing Productivity ratios Base Year Current Year Unit Unit Output A 910000 1080000 Material B 182000 1080000 Labor C 91000 540000 Material Productivity ratio AC 500 100 Labor Productivity ratio BC 1000 200 2 Partial income Statement Base Year Current Year Change in Unit Per unit rate Total Unit Per unit rate Total Total Output A 910000 1400 1274000000 1080000 1400 1512000000 See Answer

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	Base Year	Current Year
Output	910,000	1,080,000
Output prices	$14	$14
Input quantities:
Materials (lbs.)	182,000	1,080,000
Labor (hrs.)	91,000	540,000
Input prices:
Materials	$4	$5
Labor	$8	$8


Holbrook Company
Productivity Profile
	Base Year	Current Year
Materials productivity ratio
Labor productivity ratio


Holbrook Company
Partial Income Statements
	Base Year	Current Year
Sales	$	$
Materials
Labor
Gross profit	$	$