Question

Problem 2-3 e the multifactor productivity measure for each of the weeks shown for production of chocolate ba and an hourty wage of $16. Overhead is 15 times weekly labor cost Maternial costis s9 per pound. Round your answers to 2 decinel 33,000 38,000 27,000 37,000 4B0 530 470 570 2 k Prevo S Next >

Answer 1

Formula for Multifactor Productivity = Output/Input

Here, Output will be units

Input will be the total cost.

For Week 1 -

Total Cost = Labor Cost + Material Cost + Overhead Cost

Total Cost = 6*40*16 + 480*9 + 6*40*16*1.5 = 13920

Multi Factor Productivity = 33000/13920 = 2.37 units per $

For Week 2 -

Total Cost = 7*40*16 + 530*9 + 7*40*16*1.5 = 15970

Multi Factor Productivity = 38000/15970 = 2.38 units per $

For Week 3 -

Total Cost = 5*40*16 + 470*9 + 5*40*16*1.5 = 12230

Multi Factor Productivity = 27000/12230 = 2.21 units per $

For Week 4 -

Total Cost = 7*40*16 + 570*9 + 7*40*16*1.5 = 16330

Multi Factor Productivity = 37000/16330 = 2.27 units per $