Question

Question 17 3 points Save Answer Compute the total productivity measure, in units/dollar, for an eight-hour day in which the usable output was 3,463 units, produced by three workers who used 596 pounds of materials. Workers have an hourly wage of $22, and material cost is $2 per pound. Overhead is 1.5 times labor cost. (Write your answer using TWO decimal places).

Answer 1

Answer: 1.38

Explanation:

Output = 3463 units

Labor Cost = No. of Workers * Working hours*Hourly Wage = 3*8*22 = $528

Material Cost = Material Used* Cost of Material per pound = 596*2 = $1192

Overhead Cost = 1.5*Labor Cost = 1.5*528 = $792

Total Cost = Labor Cost + Material Cost + Overhead Cost = 528 + 1192 + 792 = $2512

Total Productivity = Output/Total Cost = 3463/2512 = 1.38 units per dollar