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Problem - As the cost accounting manager at Cambria Chemicals (CC), you are responsible for compiling and reporting various performance measures to the senior managers. The company instituted many efficiency improvement programs recently, and the CFO has asked you to measure and report total factor productivity measures based on the three inputs (material, labor, and overhead). Data for the last two years follow:
Year 2
Year 1
Gallons input (thousands)
10,500
9,500
Labor-hours (thousands)
9,100
6,700
Gallons of output (thousands)
12,300
10,300
From the accounting records, you also gather the following information for the two years:
Cost of inputs (per gallon)
$85
$90
Wage rate (per hour)
$23
$16
Total manufacturing overhead
$1,370,000
$1,220,000
Selling price of output (per gallon)
$385
$390
Required: Compute the total factor productivity measures for year 1 and year 2 based on the three inputs (material, labor, and overhead). (Round your answers to 3 decimal places.)
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