Question

2) You are given departmental financial information for a hypothetical Satellite Components Corporation in the table below. Using horizontal and vertical analysis, calculate A) Scrap as a percentage of total output from the department for five months. (1 point) B) Productivity for each month. (1 point) C) The percentage of direct labour to total labour cost for each month. (1 point) D) The percentage of direct labour to total units produced in the period. (1 point) E) What additional information would you like to have, if you were the team leader of this department cost improvement team? State any conclusions from the preceding analysis. (2 points) Satellite Components Corp. Thrust Flow Monitor Component department Costs Cost January February March April May Volume – units 10,500 12,000 11,000 14,000 13,000 Direct material ($) 400,000 510,000 476,000 450,000 600,000 Indirect materials ($) 15,000 30,000 25,000 41,000 30,000 Direct labour ($) 800,000 900,000 900,000 1,000,000 940,000 Indirect labour ($) 40,000 45,000 44,000 76,000 63,000 Rework ($) 20,000 15,000 10,000 9,000 12,000 Scrap ($) 5,000 8,000 10,000 15,000 12,000

I need Question E is to be solved

Answer 1

i would need other variable costs, fixed costs, administrative and selling costs.