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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