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Zychol Chemicals Corporation
Texas . Production manager of Zychol Chemicals. in Houston.Hi! I·m Bob Richards.
Hello there! I·m Sharon Walford and I·m the company·s Operations Analyst .
000 Capital Cost Applied To The Department ($) 375.000 .000 28.2006 2007 Production (units) 4.500 6.000 620.000 Raw Material Used (barrels of petroleum byproducts) 700 900 Labor Hours 22.
Labor cost per hour $13 per hour $14 per hour .
Average cost per barrel of raw material $320 per barrel $360 per barrel .
Capital Cost $375.000 $620.000 .
Richards. .Prepare the productivity part of the report for Mr.
The effect of accounting procedures is often beyond the control of managers. Both labor and material productivity increased Net result is a large negative change in productivity. .
What are the implications of the change in the producer price index? .
reduces the negative impact on the capital allocation material costs are still higher in 2007 after adjustment for inflation negative 5% growth in productivity remains increase in the capital base is responsible yet should not persist in future years .