Question

What is the multifactor productivity for Space Z Inc. using the following data? 10,000 Units Produced...

What is the multifactor productivity for Space Z Inc. using the following data?

10,000 Units Produced

Sold for $10/unit

500 labor hours

Labor rate: $9/hr

Cost of raw material: $30,000

Overhead: $15,50

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Answer #1

VALUES
LABOR = 4500
MATERIAL = 30000
OVERHEAD = 1550


OUTPUT = 100000


PRODUCTIVITY = OUTPUT / TOTAL INPUT
PRODUCTIVITY = 100000 / (4500 + 30000 + 1550) = 2.77

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