Answer:
Multifactor productivity = 2
Explanation:
Given:
Total output = 400 units
Standard selling price = $100 per unit
Labor costs = $15 per hour
Number of workers = 10 workers
Number of hour = 40 hours per week
Total material costs = $5,000
Overhead = 1.5 times of (Total labor cost)
Calculation:
Total output = 400 x $100 = $40,000
Total labor cost = $15 x 10 x 40 = $6,000
Overhead = Total labor cost x 1.5 = $6,000 x 1.5 = $9,000
Multi factor productivity = Total output / (Total labor cost + Total material cost + Overhead)
= $40,000 / ($6,000 + $5,000 + $9,000)
= $40,000 / $20,000
Multifactor productivity = 2