Question

Compute the multifactor productivity measure for each of the weeks shown for production of chocolate bars. What do the productivity figures suggest? Assume 40-hour weeks and an hourly wage of $12. Overhead is 1.5 times weekly labor cost. Material cost is $6 per pound.Week Output (units) Workers Material (lbs)1 30,000 6 4502 33,600 7 4703 32,200 7 4604 35,400 8 480

Answer 1

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