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The following table shows the output of the past four weeks' production: a. Assume a total of 40 hours of work a week. Calculate the
The following table shows the output of the past four weeks' production: a. Assume a total of 40 hours of work a week. Calculate the labour productivity per hour for each week. b. Calculate the multi-factor productivity measure for each week below. Assume 40 hours of work a week and an hourly wage rate of $13. Overhead is 1.5 times weekly labour cost. Material cost is $8 per kilogram. Selling price is $138 per unit. What do the productivity figures suggest? (Round the final answers to 2 decimal places.) Multifactor productivity i eadily. A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labour content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used seven workers, who produced an average of 70 carts per hour. Labour cost was $15 per hour and machine cost was $45 per hour. With the new equipment, it was possible to transfer one of the workers to another department. Machine cost increased by $15 per hour while output increased by three carts per hour. a. Calculate labour productivity before and after the new equipment. Use carts per worker per hour as the measure of labour productivity. (Round the final answers to the nearest whole number.) b. Calculate the multi-factor productivity before and after the new equipment. Use carts per dollar cost (labour plus machine) as the measure. (Round the final answers to 2 decimal places.) c. Comment on the changes in productivity according to the two measures. Which one do you believe is more pertinent for this situation? TB 02-56 The weekly output of a fabrication process is shown below The weekly output of a fabrication process is shown below together with data for labour and material inputs. Standard selling price is $125 per unit. Overhead is charged weekly at the rate of $1,500 plus .5 times direct labour cost. Assume a 40 -hour week and an hourly wage of $16. Material cost is $10 per linear foot. What is the average multifactor productivity? a. Calculate the labour productivity for each of the weeks. b. On the basis of your calculations, what can you conclude about crew size and productivity? crews are more productive thar ews, and a crew of has the highest productivity
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