Usher Dash is president of Dash Manufacturing, a producer of Go-Kart tires. Dash makes 870,000 tires per day with the following resources: Labor 1670 hours per day @ 225 per hour Raw Material 900,000 pounds per day @ Rs.10 per pound Energy Rs.87,000 per day Capital Rs.560,000 per day a) What is the labor productivity per labor hour for these tires? b) What is the multifactor productivity for these tires? c) What is the percentage change in multifactor productivity if Upton can reduce the energy bill by Rs.13,000 per day without cutting production or changing any other input? What is the capital productivity per tire per rupee?

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Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.