37. Gutsen Communications Inc. manufactures a scrambling device for cellular phones. The
main component of the scrambling device is a very delicate part—DTV-12. DTV-12 requires
careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled
laborers are hired to manufacture and install DTV-12. Damages still occur, however. The
following are the operating data of Gutsen Communications Inc. for 2015 and 2016 relative to the
insertion of DTV-12. Round calculations to two significant digits.
2015 2016
Number of phones manufactured 600,000 780,000
Units of DTV-12 used 960,000 1,072,500
Direct labor hours for DTV-12 insertion 1,800 2,600
Total cost of DTV-12 units $1,443,750 $2,333,750
Direct labor wage rate per hour $67 $82
The partial direct labor operational productivity ratio for 2015 is: