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2. A production manager at a certain company is evaluating the productivity between two different months. The accounting department provided the following information about the
2.
- A production manager at a certain company is evaluating the productivity between two different months. The accounting department provided the following information about the process for the past two months.
| Month 1 | Month 2 |
Production (units) | 1124 | 1310 |
Labor (hrs) | 254.7 | 296.8 |
Material (kg) | 21,041 | 24,523 |
Overhead ($) | 8,992 | 10,480 |
The selling price is $100 per unit in month 1 and $105 per unit in month 2. The cost of labor is $50 per hour including benefits in the two months. The material cost is $2 per kg in month 1 and $2.1 per kg in month 2.
- Calculate the labor productivity for the two months.
- Calculate the total productivity for the two months.
- Calculate the percentage change in the labor and total productivity between the two months.
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