Compute the multifactor productivity measure for each of the weeks shown for pro
ID: 407445 • Letter: C
Question
Compute the multifactor productivity measure for each of the weeks shown for production of chocolate bars. Assume 40-hour weeks and an hourly wage of $10. Overhead is 1.5 times weekly labor cost. Material cost is $8 per pound. (Round your answers to 2 decimal places.)
MFP (Output / Total Cost)
Compute the multifactor productivity measure for each of the weeks shown for production of chocolate bars. Assume 40-hour weeks and an hourly wage of $10. Overhead is 1.5 times weekly labor cost. Material cost is $8 per pound. (Round your answers to 2 decimal places.)
Explanation / Answer
Multi-Factor productivity
= Output / Input cost
Week 1
Labor = 5 workers x 40 hours x $ 10 per hour
= $ 2,000
Overhead = 1.5 x labor cost
= 1.5 x $ 2,000
= $ 3,000
Material = 430 x $ 8
= $ 3,440
Total = $ 2,000 + $ 3,000 + $ 3,440
= $ 8,440
MFP = 30,000 / 8,440
= 3.55
Week 2
Labor = 8 workers x 40 hours x $ 10 per hour
= $ 3,200
Overhead = 1.5 x labor cost
= 1.5 x $ 3,200
= $ 4,800
Material = 470 x $ 8
= $ 3,760
Total = $ 3,200 + $ 4,800 + $ 3,760
= $ 11,760
MFP = 33,000 / 11,760
= 2.81
Week 3
Labor = 7 workers x 40 hours x $ 10 per hour
= $ 2,800
Overhead = 1.5 x labor cost
= 1.5 x $ 2,800
= $ 4,200
Material = 510 x $ 8
= $ 4,080
Total = $ 2,800 + $ 4,200 + $ 4,080
= $ 11,080
MFP = 31,000 / 11,080
= 2.80
Week 4
Labor = 9 workers x 40 hours x $ 10 per hour
= $ 3,600
Overhead = 1.5 x labor cost
= 1.5 x $ 3,600
= $ 5,400
Material = 540 x $ 8
= $ 4,320
Total = $ 3,600 + $ 5,400 + $ 4,320
= $ 13,320
MFP = 36,000 / 13,320
= 2.70
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.