QUESTION 3 10 points Save Answer In producing 254 units of our signature product
ID: 383890 • Letter: Q
Question
QUESTION 3 10 points Save Answer In producing 254 units of our signature product, we require 89 hours of labor, 418 dollars worth of overhead, and 71 units of material. Labor costs 30 per hour and material costs 18 per unit. A unit of output is work 459. What is our multifactorial productivity? QUESTION 4 10 points Save Answer Last year, to produce 267 units of our signature product, we required 76 hours of labor, 366 dollars worth of overhead, and 60 units of material. During that time period, labor cost 39 per hour and material cost 28 per unit, and a unit of output was worth 521. If this year everything stays the same except a 10 decline in the value of a unit of output, what will be our multifactorial productivity?Explanation / Answer
Answer to Question 3:
Total applicable labor cost = $ 30 / hour x 89 hours = $2670
Total applicable material cost = $ 18 / unit x 71 units = $1278
Overhead = $418
Sum of above 3 costs = $2670 + $1278 + $418 = $4366
Total value of output = 254 x 459 = $116586
Thus,
Multifactor productivity = Total value of output/ Sum of 3 costs = 116586/4366 = 26.703
Answer to Question 4 :
Total applicable labor cost = $ 39/ hour x 76 hours = $2964
Total applicable material cost = $28/ unit x 60 units = $1680
Overhead = $366
Sum of above 3 costs = $2964 + $1680 + $366 = $5010
Total quantity = 267 units
Value of a unit output = $21 x 0.90 ( i.e. 10% decline in value of unit of output) = $18.90
Total value of output = 267 x 18.90 = $ 5046.30
Thus,
Multifactor productivity = Total value of output/ Sum of 3 costs = $5046.30/ $5010 = 1.007
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