At Symtecks, the output of a specific process is valued at $100 per unit. The cost of labor is $50 per hour including benefits. The accounting department provided the following information about the process for the past four weeks: Week 1 Week 2 Week 3 Week 4 Units Produced 1,124 1,310 1,092 981 Labor ($) 12,735 14,842 10,603 9,526 Material ($) 21,041 24,523 20,442 18,364 Overhead ($) 8,992 10,480 8,736 7,848 a. Use the multifactor productivity ratio to see whether recent process improvements had any effect and, if so, when the effect was noticeable.b. Has labor productivity changed? Use the labor productivity ratio to support your answer.
At Symtecks, the output of a specific process is valued at $100 per unit. The cost of labor is $50 per hour including benefits. The accounting department provided the following information about the process for the past four weeks: Week 1 Week 2 Week 3 Week 4 Units Produced 1,124 1,310 1,092 981 Labor ($) 12,735 14,842 10,603 9,526 Material ($) 21,041 24,523 20,442 18,364 Overhead ($) 8,992 10,480 8,736 7,848 a. Use the multifactor productivity ratio to see whether recent process improvements had any effect and, if so, when the effect was noticeable.b. Has labor productivity changed? Use the labor productivity ratio to support your answer.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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At Symtecks, the output of a specific process is valued at $100 per unit. The cost of labor is $50 per hour including benefits. The accounting department provided the following information about the process for the past four weeks:
| Week 1 | Week 2 | Week 3 | Week 4 | |
| Units Produced | 1,124 | 1,310 | 1,092 | 981 |
| Labor ($) | 12,735 | 14,842 | 10,603 | 9,526 |
| Material ($) | 21,041 | 24,523 | 20,442 | 18,364 |
| Overhead ($) | 8,992 | 10,480 | 8,736 | 7,848 |
a. Use the multifactor productivity ratio to see whether recent process improvements had any effect and, if so, when the effect was noticeable.
b. Has labor productivity changed? Use the labor productivity ratio to support your answer.
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