Washburn Company produces earbuds. During the year, manufacturing overhead costs are estimated to be $216,000. Estimated machine
1 answer:
You might be interested in
Answer:
(a) 0.0085 rugs per dollar.
(b) 0.0069 rugs per dollar.
Explanation:
We have been given that Hokey Min's Kleen Karpet cleaned 75 rugs in October, consuming the following resources: Labor: 520 hours at $17 per hour.
(a) To find the labor productivity per dollar, we will divide number of rugs by amount spent on labor.
Therefore, the labor productivity is 0.0085 rugs per dollar.
(b) To find the multi-factor productivity, we will divide number of rugs by total cost or expenses.
Therefore, the multi-factor productivity is 0.0069 rugs per dollar.