Answer:
Labor productivity in units per labor hour for Deluxe car = 0.19 per hour
Labor productivity in units per labor hour for Limited car = 0.24 per hour
Labor productivity in dollar of output per dollar of labor expense for Deluxe car = $98.75
Labor productivity in dollar of output per dollar of labor expense for Limited car = $128.69
Explanation:
Note: This question is not complete and its data are merged together. The complete question with the sorted data is therefore provided before answering the question as follows:
Two types of cars (Deluxe and Limited) were produced by a car manufacturer last year. Quantities sold, price per unit, and labor hours are given below.
QUANTITY $/UNIT
Deluxe car 3,655 units sold $7,700/car
Limited car 5,850 units sold $9,200/car
Labor, Deluxe 19,000 hours $15/hour
Labor, Limited 24,600 hours $17/hour
What is the labor productivity for each car? Provide two sets of figures: units per labor hour, and dollar of output per dollar of labor expense. (Round your answers to 2 decimal places.)
The explanation of the answers is now provided as follows:
For each type of car, the following formulae can be used:
Labor productivity in units per labor hour = Units sold / Labor hours ……. (1)
Labor productivity in dollar of output per dollar of labor expense = (Units sold * Price per car) / (Labor hours / Labor rate per hour) ……………. (2)
Using equation (1), we have:
Labor productivity in units per labor hour for Deluxe car = 3,655 / 19,000 = 0.19 per hour
Labor productivity in units per labor hour for Limited car = 5,850 / 24,600 = 0.24 per hour
Using equation (2), we have:
Labor productivity in dollar of output per dollar of labor expense for Deluxe car = (3,655 * $7,700) / (19,000 * $15) = $98.75
Labor productivity in dollar of output per dollar of labor expense for Limited car = (5,850 * $9,200) / (24,600 * $17) = $128.69
These can be translated into a table as follows:
Labor Productivity
Units/hour Dollars
Deluxe Car 0.19/hour $98.75
Limited Car 0.24/hour $128.69
