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Patrick Cooper, the production manager of Cooper Cakes, is preparing his quarterly report, which is to include a productivity analysis for his...

Patrick Cooper, the production manager of Cooper Cakes, is preparing his quarterly report, which is to include a productivity analysis for his department. One of the inputs is cake production data prepared by Bell, his operations analyst. The report, which she gave him this morning, showed the following:


2015 2016

Production (units)

5,700 8,000


Raw material used (bags of cake ingredients)

650 950


Labor hours

23,500 26,500


Capital cost applied to the department ($)

$50,000 $80,000



Patrick knew that his labor cost per hour had increased from an average of $10 per hour to an average of $12 per hour, primarily due to a move by management to become more competitive with the new Sprinkles Cupcakes opening in the area. He also knew that his average cost per bag of raw material had increased from $5 to $7.50 per bag. He was concerned about the accounting procedures that increased his capital cost from $50,000 to $80,000, but earlier discussions with his boss suggested that there was nothing that could be done about that allocation.


Patrick wondered if his productivity had increased at all. He called Bell into the office and conveyed the above information to her and asked her to prepare the report


Prepare the productivity part of the report for Mr. Cooper .

1. Provide ONE numerical answer in percentage for:


Change year-over-year for production = _____ % (By what percentage did production change from 2015 to 2016?)

2. Provide one numerical answer for single factor productivity in Units/Dollar:

Raw material cost productivity for 2015:

= _____ Units/Dollar

3. Provide calculations for single factor productivity in Units/Labor hour:

Single factor productivity for labor hours in 2015

= _____ Units/Labor hour

4. Prepare the productivity part of the report for Mr. Cooper .

Provide calculations for single factor productivity in Units/Dollar

Raw material cost productivity for 2016:

= _____ Units/Dollar

5. Provide calculations for multifactor productivity in Units/Dollar for 2015

Multifactor productivity for 2015:

= _____ Units/Dollar

6. Provide calculations for multifactor productivity in Units/Dollar for 2016

Multifactor productivity for 2016 (round to 4 decimal places):

= _____ Units/Dollar

7.  Management's expectation for departments such as Mr. Richards's is an annual productivity increase of 7%. Did he reach this goal?

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