Question
1. The weekly output of a production process is shown below, together with data for labor and material inputs. The standard inventory value of the
1. The weekly output of a production process is shown below, together with data for labor and material inputs. The standard inventory value of the output is $1250 per unit. Overhead is charged weekly at the rate of $1500 plus .5 times direct labor cost. Assume a 40-hour week and an hourly wage of $16 per worker. Material cost is $10 per running foot. (Multi-factor inputs are considered overhead, labor, and material.)
a. What is the multi-factor productivity of Week 4?
b. What is the average multi-factor productivity for this process? $
Week Output # of workers Material (ft)
1 412 6 2840
2 364 5 2550
3 392 5 2720
4 408 6 2790
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