Grader Company Manufactures Road Graders Required:
A

question 14

Essay

Grader Company manufactures road graders.Because its managers all have engineering backgrounds,they prefer nonfinancial information for their decision-making models.Therefore,they require the accountants gather data to assist in the examination of nonfinancial results of operations.The following information relates to the manufacture of a paver:
$\begin{array}{lrr}&2011&2012\\\text { Units produced and sold } & 6,800 & 5,600 \\\text { Direct manufacture labor-hours } & 136,000 & 115,200 \\\text { Direct materials used (tons) } & 29,000 & 24,400 \\\text { Direct manufacture cost per hour } & \$ 21 & \$ 22 \\\text { Direct materials cost per ton } & \$ 431 & \$ 443\end{array}$ Required:
a.What is the partial productivity for direct materials for each year?
b.What is the partial productivity for direct manufacturing labor for each year?
c.What is the total factor productivity for each year?

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Definitions:

Slippery Slope

An argument or reasoning that suggests taking a particular small action will lead to a chain of related negative consequences.

Realistic Scenario

A scenario grounded in reality, plausible and possible under current conditions, used for planning or analysis.

Landau Commission

A specific commission, potentially referring to a historical or organizational body, tasked with investigating or addressing particular issues. (Without further context, its specific mandate or origin cannot be precisely defined).

Consequentialist

A philosophy which judges the rightness or wrongness of an action based on the outcomes or consequences it produces.