Required information
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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
damage, 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:
Units manufactured
Number of CT140 used
Number of direct labor
hours spent
Cost of CT140 per unit
Direct labor wage rate per
hour
2019
2018
750,000
1,000,000
900,000
1,050,000
150,000
200,000
$
156
$
135
$
56
$
62
Assume that fixed manufacturing costs are $50 million in both 2018 and 2019.
Required:
1. Compute the total productivity ratios for 2018 and 2019. (Round your answers to 4 decimal places.)
2019
2018
Total productivity