Nonfinancial Data AnalysisAction Skateboards, Inc.

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Nonfinancial Data Analysis

Action Skateboards, Inc., manufactures state-of-the-art skateboards and related equipment. The production process involves the following departments and tasks: the Molding Department, where the board’s base is molded; the Sanding Department, where the base is sanded after being taken out of the mold; the Fiber-Ap Department, where a fiberglass coating is applied; and the Assembling Department, where the wheels are attached and the board is inspected. After the board is molded, all processes are performed by hand.

Linda Raymond, the manager of the firm’s California branch, is concerned about the number of hours her employees are working.

The California plant has a two-shift labor force. The actual hours worked for the past four weeks are as follows. 

Actual Hours Worked—First Shift     

Week

Week

Week

Week 

Department

1

2

3

4

Totals

Molding

420

432

476

494

1,822

Sanding

60

81

70

91

302

Fiber-Ap

504

540

588

572

2,204

Assembling

768

891

952

832

3,443 

Actual Hours Worked—Second Shift     

Week

Week

Week

Week    

Department

1

2

3

4

Totals   

Molding

360

357

437

462

1,616   

Sanding

60

84

69

99

312   

Fiber-Ap

440

462

529

506

1,937   

Assembling

670

714

782

726

2,892            

Expected labor hours per product for each operation are Molding, 3.4 hours; Sanding, 0.5 hour; Fiber-Ap, 4.0 hours; and Assembling, 6.5 hours. Actual units completed are as follows: 

First

Second

Week

Shift

Shift

1

120

100

2

135

105

3

140

115

4

130

110

Required

1. Prepare an analysis of each week to determine the average actual labor hours worked per board for each phase of the production process and for each shift. Carry your solution to two decimal places.

2. Using the information from 1 and the expected labor hours per board for each department, prepare an analysis showing the differences in each phase for each shift. Identify possible reasons for the differences.

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