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Katrina Design has decided to experiment with two alternative manufacturing approaches, identified as MF and LI, for producinOperational partial productivity MF LI Direct materials Direct labor Financial partial productivity Direct materials Direct l

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Answer:

1 Operational Partial Productivity
MF LI
Direct materials 0.1304 0.2920
Direct labor 0.1710 02481
2 Financial Partial Productivity
MF LI
Direct materials 0.0109 0.0142
Direct labor 0.0117 0.0099
3 Total Productivity 0.0062 0.0054
Workings:
Manufacturing Cost
MF LI
Direct materials 3036000 2825000
Direct labor 2316000 3325000
Total 5352000 6150000


1. Operational partial productivity
Direct materials (MF) = 33000/253000 =0.1304
Direct materials (LI) = 33000/193000 =0.1710
Direct labor (LI) = 33000/113000 =0.2920
Direct labor (LI) = 33000/133000 =0.2481

2. Financial Partial productivity
Direct materials (MF) = 33000/3036000=0.0109
Direct materials (LI) = 33000/2316000=0.0142
Direct labor (LI) = 33000/2825000=0.0117
Direct labor (LI) = 33000/3325000=0.0099

3. Total Productivity (MF) = 33000/5352000 =0.0062
  Total Productivity LI) = 33000/6150000 =0.0054

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