The manager of a crew that installs wood floors has tracked the crew’s output over the past several weeks (see the table below). The wholesale cost of lumber to this small firm is $6 per square foot. Each worker works 30 hours per week, and earns $25 per hour. The company’s overhead rate is 160%, while it charges its customers $15 per square foot of flooring installed Week Crew Size Lumber Used (sq. ft) Flooring Installed (sq ft) 1 4 450 440 2 2 280 232 Show all calculations in answering the following questions a. Calculate labor productivity per worker hour for each week using units of output divided by units of labor. b. Calculate multifactor productivity for each week. c. What is the percentage change in labor productivity from week 1 to week 2. d. What is the percentage change in labor productivity from week 1 to 2 using value($) of output divided by number of worker hours.
The manager of a crew that installs wood floors has tracked the crew’s output over the past several weeks (see the table below). The wholesale cost of lumber to this small firm is $6 per square foot. Each worker works 30 hours per week, and earns $25 per hour. The company’s overhead rate is 160%, while it charges its customers $15 per square foot of flooring installed
Week Crew Size Lumber Used (sq. ft) Flooring Installed (sq ft)
1 4 450 440
2 2 280 232
Show all calculations in answering the following questions
a. Calculate labor productivity per worker hour for each week using units of output divided by units of labor.
b. Calculate multifactor productivity for each week.
c. What is the percentage change in labor productivity from week 1 to week 2.
d. What is the percentage change in labor productivity from week 1 to 2 using value($) of output divided by number of worker hours.
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