Respuesta :
Answer:
(a) The Labor productivity per dollar = 0.0095 rugs/dollar.
(b) The Multifactor productivity = 0.0078 rugs/dollar.
Explanation:
Given information:
Number of rugs = 85
Labors: 525 hours at $17 per hour.
Total cost of labors = 525 × 17 = $8925
Solvent: 120 gallons at $8 per hour.
Total cost of solvent = 120 × 8 = $960
Machine Rental: 20 days at $50 per hour.
Total rent = 20 × 50 = $1000
Total cost = Total cost of labors + Total cost of solvent + Total rent
Total cost = $8925 +$960 +$1000 =$10885
(a)
We need to find Labor productivity per dollar.
[tex]\text{Labor productivity}=\frac{outpu t}{\text{Labor cost}}[/tex]
[tex]\text{Labor productivity}=\frac{85}{8925}[/tex]
[tex]\text{Labor productivity}=0.0095238[/tex]
[tex]\text{Labor productivity}\approx 0.0095[/tex]
Therefore the Labor productivity per dollar = 0.0095 rugs/dollar.
(b)
We need to find the Multifactor productivity.
[tex]\text{Multifactor productivity}=\frac{Outp ut}{\text{Total cost}}[/tex]
[tex]\text{Multifactor productivity}=\frac{85}{10885}[/tex]
[tex]\text{Multifactor productivity}=0.0078089[/tex]
[tex]\text{Multifactor productivity}\approx 0.0078[/tex]
Therefore the Multifactor productivity = 0.0078 rugs/dollar.
