QUESTION 32 John manages a cupcake making operation. Fifty dozen snack cakes are
ID: 2815080 • Letter: Q
Question
QUESTION 32
John manages a cupcake making operation. Fifty dozen snack cakes are produced each Thursday and Friday, and the time it takes to produce each cupcake is 2 minutes of direct labor time filling the shells with batter and decorating them with icing. John employs four workers who perform the direct labor for eight hours. How well does John utilize labor? Your answer should be a percent personnel utilization. (submit your calculations on an external document)
31.25
37.50
35.20
66.25
62.50
A.31.25
B.37.50
C.35.20
D.66.25
E.62.50
Explanation / Answer
Solution: Correct option is E : 62.50
Total cupcakes are produced each day =50 dozens*12=600 cupcakes
Time required to produced 600 cupcakes in a day = 600 cupcakes * 2 minutes per cup cake= 1200 minutes
Available labour hours in a day= 4 workers*8 labour hours =32 hours or 32*60 minutes= 1920 minutes
Utilisation of personnal= time consumed to produce 50 dozen cupcakes/ total time available
Utilisation of personnal= 1200/1920=0.625 or 62.50%
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