Operations Management FA2018 Quiz: Quiz 1 This Question: 1 pt cements Is les ab

Question

Operations Management FA2018 Quiz: Quiz 1 This Question: 1 pt cements Is les ab and Mas- 4 of 15 (13 ignments Hokey Min's Kleen Karpet cleaned 85 rugs in October, consuming the following resources: 520 hours at $13 per hour 100 gallons at $5 per gallon 24 days at $50 per day cussions Solvent Machine Rental: rades oogle Drive Rutgers Libraries a) Labor producti ity per doll . [ gs dollar (round your response to four decrnalplaces. b) Mutifactor productivity nugs/dollar (round your response to four decimal places) Enter your answer in each of thoe answer boxes 888669E 2 4

Explanation / Answer

a)

Labor cost

= Number of hours x Labor hour rate

= 520 x $13

= $6,760

Labor productivity per dollar

= Production / Labor cost

= 85 / $6,760

= 0.0126 rugs / dollar

b)

Cost of solvent

= Quantity consumed x Rate

= 100 x $5

= $500

Machine rental cost

= Number of days x Cost per day

= 24 x $50

= $1,200

So, Total cost

= Labor cost + Material cost + Rental cost

= $6,760 + $500 + $1,200

= $8,460

So, Multifactor productivity

= Production / Total cost

= 85 / $8,460

= 0.0100 rugs / dollar

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