Question

A team of workers make 500 units of a product having cost of $ 10 each. Actual cost is $ 400 for labor and $ 2000 for material & $ 500 for overheads, their labor productivity (in $/$) and multi-factor productivity (in $/$) are

Answer 1

Answer:

1.72

Explanation:

SOLUTION

Cost of labor = $ 2000

Cost of material= $ 400

Overhead labor= $500

Multifactor productivity = (Value of Output/(Labor Cost + Material Cost + Overhead Cost))

(500 units)($10/unit)÷( $2,000 + $400+ $500)

= $5000÷$2900

= 1.72