If the supervisor's primary responsibility in the production of Product Y is employee supervision, and his/her productivity is measured based on output per labor hour, such supervisor's productivity measure is A. 3.20 unit per kilo B. 4.80 units per piece C. 4.80 per hour D. 0.30 per peso input
If the supervisor's primary responsibility in the production of Product Y is employee supervision, and his/her productivity is measured based on output per labor hour, such supervisor's productivity measure is A. 3.20 unit per kilo B. 4.80 units per piece C. 4.80 per hour D. 0.30 per peso input
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Total factor productivity is computed by dividing the units of output by the cost of all inputs.
It varies with input prices, quantities, input mix, and output levels. It is computed for
purposes of control and performance evaluation.
Assume that Rosales Company produced 1,152 units of its product Y last month. The inputs
to the production process of product Y were:
Material A
P 432
Material B
360 kgs. @ P1.20 per kg.
240 units @ P2.20 per unit
240 hours @ P12 per hour
Total cost of inputs
528
2,880
Direct labor
P 3,840
If the supervisor's primary responsibility in the production of Product Y is employee
supervision, and his/her productivity is measured based on output per labor hour, such
supervisor's productivity measure is
A. 3.20 unit per kilo
B. 4.80 units per piece
C. 4.80 per hour
D. 0.30 per peso input
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