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a) Compute the labor productivity and the multifactor productivity for each unit. Use an eight hour day for multifactor productivity Labor Productivity =LP =Output/labor

a) Compute the labor productivity and the multifactor productivity for each unit. Use an eight hour day for multifactor productivity Labor Productivity =LP =Output/labor

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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b) Suppose a new, more standardized procedure is to be introduced that will enable each employee to process two additional customer per day. Compute the expected labor and multifactor productivity rates for each unit. I
Transcribed Image Text:b) Suppose a new, more standardized procedure is to be introduced that will enable each employee to process two additional customer per day. Compute the expected labor and multifactor productivity rates for each unit. I
The following shows data on the average mumber of customers processed by several bank service units each day. The hourly wage rate is $15, overhead rate is 1.25 times labor cost, and material cost is $3 per customer. Unit Employees Customers processed per day A 25 4 45 48 D 60 a) Compute the labor productivity and the multifactor productivity for each unit. Use an eight hour day for multifactor productivity Labor Productivity =LP =Output/labor Unit A. 25/2=12.5 Customer service per employee Unit B. 45/4=11.25 Customer service per employee Unit C. 48/5=9.6 Customer service per employee Unit D. 60/6=10 Customer service per employee Multifactor productivity= MFP= Output / labor (S) +Material ($) + Overhead (S) Unit A. 25/ (2*8*15) +25*3+ 1.25* (2*8*15) 25/ (240 75 300) =615 25/615= 24.6 MFP A= 24.6||
Transcribed Image Text:The following shows data on the average mumber of customers processed by several bank service units each day. The hourly wage rate is $15, overhead rate is 1.25 times labor cost, and material cost is $3 per customer. Unit Employees Customers processed per day A 25 4 45 48 D 60 a) Compute the labor productivity and the multifactor productivity for each unit. Use an eight hour day for multifactor productivity Labor Productivity =LP =Output/labor Unit A. 25/2=12.5 Customer service per employee Unit B. 45/4=11.25 Customer service per employee Unit C. 48/5=9.6 Customer service per employee Unit D. 60/6=10 Customer service per employee Multifactor productivity= MFP= Output / labor (S) +Material ($) + Overhead (S) Unit A. 25/ (2*8*15) +25*3+ 1.25* (2*8*15) 25/ (240 75 300) =615 25/615= 24.6 MFP A= 24.6||
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