Reference no: EM132953728
Question - Ashley Technology Inc. manufactures a scrambling device for cellular telephones. The device's main component is a delicate part, CT140. CT140 is easily damaged and requires careful handling. Once damaged, it must be discarded. The firm hires only skilled laborers to manufacture and install CT140; however, some are still damaged. Robotic instruments process all other parts. Ashley's operating data for 2 years are as follows:
2019 2018
Units manufactured 960,000 1,160,000
Number of CT140 used 1,050,000 1,190,000
Number of direct labor hours spent 240,000 290,000
Cost of CT140 per unit $165 $144
Direct labor wage rate per hour $65 $71
Assume that fixed manufacturing costs are $59 million in both 2018 and 2019.
Required - Compute the total productivity ratios for 2018 and 2019.