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The output of a process is valued at $100 per unit. The cost of labor is $50 per hour. The accounting department provided the following

The output of a process is valued at $100 per unit. The cost of labor is $50 per hour. The accounting department provided the following information about the process for the past two weeks:

Week 1

Week 2

Units Produced

1,124

981

Labor (hours)

255

191

Material ($)

21,041

18,364

Overhead ($)

8,992

7,848

Use the multifactor productivity ratio to see whether recent process improvements had any effect and, if so, how much was the effect.

Has labor productivity changed? Use the labor productivity ratio to support your answer.

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