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4 years ago

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Hokey Min's Kleen Karpet cleaned 85 rugs in October, consuming the following resources:Labor: 525 hours at $17 per hourSolven

t: 120 gallons at $8 per hourMachine Rental: 20 days at $50 per hour(a) Labor productivity per dollar = ____ rugs/dollar (round your response to four decimal places).(b) Multifactor productivity =_____rugs/dollar (round your response to four decimal places).

1 answer:

Viefleur [7K]4 years ago

4 0

Answer:

(a) The Labor productivity per dollar = 0.0095 rugs/dollar.

(b) The Multifactor productivity = 0.0078 rugs/dollar.

Explanation:

Given information:

Number of rugs = 85

Labors: 525 hours at $17 per hour.

Total cost of labors = 525 × 17 = $8925

Solvent: 120 gallons at $8 per hour.

Total cost of solvent = 120 × 8 = $960

Machine Rental: 20 days at $50 per hour.

Total rent = 20 × 50 = $1000

Total cost = Total cost of labors + Total cost of solvent + Total rent

Total cost = $8925 +$960 +$1000 =$10885

(a)

We need to find Labor productivity per dollar.

$\text{Labor productivity}=\frac{outpu t}{\text{Labor cost}}$

$\text{Labor productivity}=\frac{85}{8925}$

$\text{Labor productivity}=0.0095238$

$\text{Labor productivity}\approx 0.0095$

Therefore the Labor productivity per dollar = 0.0095 rugs/dollar.

(b)

We need to find the Multifactor productivity.

$\text{Multifactor productivity}=\frac{Outp ut}{\text{Total cost}}$

$\text{Multifactor productivity}=\frac{85}{10885}$

$\text{Multifactor productivity}=0.0078089$

$\text{Multifactor productivity}\approx 0.0078$

Therefore the Multifactor productivity = 0.0078 rugs/dollar.

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