Answer:
Week 1 =3.03
Week 2 =2.99
Week 3=2.9
Week 4=2.83
Step-by-step explanation:
Computation for the multifactor productivity measure for each of the weeks shown for production of chocolate bars.
Using this formula
Week Multifactor productivity measure = (Output / Total Cost)
Where:
Output represent Quantity produced
Total cost represent Labor cost + Material cost + Overhead
Let plug in the formula
Week 1= 30,000/(40*12*6)+[(40*12*6)1.5]+(450*6)
Week 1 =30,000/(2,880)+(2,880*1.5)+2,700
Week 1 =30,000/(2,880+4,320+2,700)
Week 1=30,000/9,900
Week 1 =3.03
Week 2= 33,600/(40*12*7)+[(40*12*7)1.5]+(470*6)
Week 2 =33,600/(3,360)+(3,360*1.5)+2,820
Week 2=33,600/(3,360+5,040+2,820)
Week 2=33,600/11,220
Week 2 =2.99
Week 3= 32,200/(40*12*7)+[(40*12*7)1.5]+(460*6)
Week 3 =32,200/(3,360)+(3,360*1.5)+2,760
Week 3=32,200/(3,360+5,040+2,760)
Week 3=32,200/11,160
Week 3=2.9
Week 4= 35,400/(40*12*8)+[(40*12*8)1.5]+(480*6)
Week 4 =35,400/(3,840)+(3,840*1.5)+2,880
Week 4=35,400/(3,840+5,760+2,880)
Week 4=35,400/12,480
Week 4=2.83
Therefore the multifactor productivity measure for each of the weeks shown for production of chocolate bars is :
Week 1 =3.03
Week 2 =2.99
Week 3=2.9
Week 4=2.83
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