Problem 18-57 (Static) Productivity Measures (LO 18-6) Terrell Industries produces a single product at its...

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Accounting

Problem 18-57 (Static) Productivity Measures (LO 18-6)

Terrell Industries produces a single product at its Roosevelt facility. The product has two main inputs, metal and labor, with additional costs being included in manufacturing overhead. The plant carries neither work-in-process nor finished goods inventories. Information from the previous four quarters of production follows:

	Q1	Q2	Q3	Q4
Metal input (pounds)	194,000	210,000	240,000	230,000
Labor input (hours)	9,700	10,560	12,500	11,500
Sales (pounds)	164,900	184,800	204,000	190,900
Average price of metal per pound	$ 0.62	$ 0.66	$ 0.70	$ 0.65
Average wage rate per hour	32.00	34.00	28.00	30.00
Average sales price per pound	6.20	5.95	6.10	6.00
Manufacturing overhead (total)	387,224	418,660	397,000	421,820

Required:

a. Compute the partial productivity measures for metal for the four quarters.

b. Compute the partial productivity measures for labor for the four quarters.

c. Compute the total factor productivity for the four quarters.

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