Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part-DTV-
12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture
and install DTV-12. Damages still occur, however. The following are the operating data of Fast Wire Incorporated for 2021 and 2022 relative to the
insertion of DTV-12.
Number of phones manufactured
Units of DTV-12 used
Direct labor hours for DTV-12 insertion
Total cost of DTV-12 units
Direct labor wage rate per hour
The partial direct labor operational productivity ratio for 2021 is:
2021
2022
707,400
965,400
2,700
$ 1,448,250
$ 94.00
790,800
1,081,500
3,590
$ 2,338,250
$ 118