Question

Susan williams runs a small flagstaff job shop where garments are made. the job shop employs eight workers. each worker is paid ​$1212 per hour. during the first week of​ march, each worker worked 4545 hours.​ together, they produced a batch of 132132 garments. of these​ garments, 5454 were​ 'seconds' (meaning that they were​ flawed). the seconds were sold for ​$100100 each at a factory outlet store. the remaining 7878 garments were sold to retail outlets at a price of ​$210210 per garment. what was the labor​ productivity, in dollars per​ labor-hour, at this job shop during the first week of​ march? labor productivity​ = 21 nothing ​dollars/labor hour ​(round your response to two decimal​ places).

Answer 1

Labour Productivity is basically the worth of goods produced by each labour or collectively in an hour, This can be expressed in the formula below:

Labour Productivity per hour of work=$\frac{Worth of Goods Produced}{Total Number of Labour Hours}$

In order to find worth of goods we shall use below Formula:

Worth of Goods= Sale Price per Unit*Number of Units Sold

In given case there are 2 types of goods sold as below

1. Proper Garments

Worth of Goods Sold= $210*78 Garments

Worth of Goods Sold=$16380

2. Seconds

Worth of Goods Sold= $100*54

Worth of Goods Sold= $5400

Total Goods Sold= $5400+$16380

Total Worth of Goods=$21780

Total Hours Worked= No of Workers*Hours Worked each Worker

Total Hours Worked= 8*45

Total Hours Worked=360 Hours

Labour Productivity=$\\ \frac{21780}{360}$

Labour Productivity=$60.5 per Hour