The weekly output of a production process is shown below, together with data for labor and material


Question: 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 $125 per unit. Overhead is charged weekly at the rate of $1500 plus 0.5 times direct labor cost. Assume a 40-hour week and an hourly wage of $16. Material cost is $10 per running foot. What is the increase (or decrease) in multi-factor productivity for this process?

Week Output #Workers Material (ft.)
1 392 5 2720
2 408 6 2790
Price: $2.99
Solution: The downloadable solution consists of 1 page
Solution Format: Word Document

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