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The manager of a crew that installs wood floors has tracked the crew's output over the past several weeks. Each worker works 37 hours per
The manager of a crew that installs wood floors has tracked the crew's output over the past several weeks. Each worker works 37 hours per week, and earns $19 per hour. The wholesale cost of lumber to the company is $6 per square foot, and the company charges its customers $15 per square foot of flooring installed. The firm's overhead rate is 130%.
Week Crew Size Lumber Used (sq. ft) Flooring Installed (sq ft)
1 4 480 420
2 2 250 238
- Calculate labor productivity for each of the weeks shown. Use the best measure of output and labor available.
Now calculate multifactor productivity for each of the weeks shown.
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