A local market research i rm has just won a contract for several thousand small projectsinvolving data gathering and statistical analysis. In the past, the i rm has assigned eachproject to a single member of its highly trained professional staff. This person would bothgather and analyze the data. Using this approach, an experienced person can complete anaverage of 10 such projects in an eight-hour day.The firm’s management is thinking of assigning two people to each project in order toallow them to specialize and become more efi cient. The process would require the datagatherer to i ll out a matrix on the computer, check it, and transmit it to the statisticalanalysis program for the analyst to complete. Data can be gathered on one project whilethe analysis is being completed on another, but the analysis must be complete before thestatistical analysis program can accept the new data. After some practice, the new processcan be completed with a standard time of 20 minutes for the data gathering and 30 minutesfor the analysis.a. What is the production (output per hour) for each alternative? What is the productivity(output per labor hour)?b. How long would it take to complete 1,000 projects with each alternative? Whatwould be the labor content (total number of labor hours) for 1,000 projects for eachalternative?
A local market research i rm has just won a contract for several thousand small projectsinvolving data gathering and statistical analysis. In the past, the i rm has assigned eachproject to a single member of its highly trained professional staff. This person would bothgather and analyze the data. Using this approach, an experienced person can complete anaverage of 10 such projects in an eight-hour day.The firm’s management is thinking of assigning two people to each project in order toallow them to specialize and become more efi cient. The process would require the datagatherer to i ll out a matrix on the computer, check it, and transmit it to the statisticalanalysis program for the analyst to complete. Data can be gathered on one project whilethe analysis is being completed on another, but the analysis must be complete before thestatistical analysis program can accept the new data. After some practice, the new processcan be completed with a standard time of 20 minutes for the data gathering and 30 minutesfor the analysis.a. What is the production (output per hour) for each alternative? What is the productivity(output per labor hour)?b. How long would it take to complete 1,000 projects with each alternative? Whatwould be the labor content (total number of labor hours) for 1,000 projects for eachalternative?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 33P: Biotechtron, Inc., has two research laboratories in the Southwest, one in Yuma, Arizona, and the...
Related questions
Question
A local involving data gathering and statistical analysis. In the past, the i rm has assigned each project to a single member of its highly trained professional staff. This person would both gather and analyze the data. Using this approach, an experienced person can complete an average of 10 such projects in an eight-hour day. The firm’s management is thinking of assigning two people to each project in order to allow them to specialize and become more efi cient. The process would require the data gatherer to i ll out a matrix on the computer, check it, and transmit it to the statistical analysis program for the analyst to complete. Data can be gathered on one project while the analysis is being completed on another, but the analysis must be complete before the statistical analysis program can accept the new data. After some practice, the new process can be completed with a standard time of 20 minutes for the data gathering and 30 minutes for the analysis. a. What is the production (output per hour) for each alternative? What is the productivity (output per labor hour)? b. How long would it take to complete 1,000 projects with each alternative? What would be the labor content (total number of labor hours) for 1,000 projects for each alternative? |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning