2018 2019 Output (units) 120,000 126,000 Selling price per unit $25.00 $25.00 Input quantities: Materials (pounds) 6,000 6,000 Labor (hours) 4,800 4,875 Input prices: Materials (per pound) $5.00 $5.50 Labor (per hour) 7.00 7.50 By how much did profits change as a result of changes in productivity related to labor? a. $1,650.00 increase b. $1,237.50 decrease c. $1,237.50 increase d. $1,650.00 decrease
2018 2019 Output (units) 120,000 126,000 Selling price per unit $25.00 $25.00 Input quantities: Materials (pounds) 6,000 6,000 Labor (hours) 4,800 4,875 Input prices: Materials (per pound) $5.00 $5.50 Labor (per hour) 7.00 7.50 By how much did profits change as a result of changes in productivity related to labor? a. $1,650.00 increase b. $1,237.50 decrease c. $1,237.50 increase d. $1,650.00 decrease
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter12: Activity-based Management
Section: Chapter Questions
Problem 19E: A company is spending 70,000 per year for inspecting, 60,000 per year for purchasing, and 56,000 per...
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2018 | 2019 | |
Output (units) | 120,000 | 126,000 |
Selling price per unit | $25.00 | $25.00 |
Input quantities: | ||
Materials (pounds) | 6,000 | 6,000 |
Labor (hours) | 4,800 | 4,875 |
Input prices: | ||
Materials (per pound) | $5.00 | $5.50 |
Labor (per hour) | 7.00 | 7.50 |
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By how much did profits change as a result of changes in productivity related to labor?a. $1,650.00 increaseb. $1,237.50 decreasec. $1,237.50 increased. $1,650.00 decrease
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