18 Feb As the cost accounting manager at Cambria Chemical
As the cost accounting manager at Cambria Chemicals (CC), you are responsible for compiling and reporting various performance measures to the senior managers. The company instituted many efficiency improvement programs recently, and the CFO has asked you to measure and report total factor productivity measures based on the three inputs (material, labor, and overhead). Data for the last two years follow: Year 2 Year 1Gallons input (thousands) 10,500 9,500Labor-hours (thousands) 9,100 6,700Gallons of output (thousands) 12,300 10,300 From the accounting records, you also gather the following information for the two years: Year 2 Year 1Cost of inputs (per gallon) $85 $90Wage rate (per hour) $23 $16Total manufacturing overhead $1,370,000 $1,220,000Selling price of output (per gallon) $385 $390 Required:a.Compute the total factor productivity measures for year 1 and year 2 based on the three inputs (material, labor, and overhead). (Round your answers to 3 decimal places.)
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