Question: The weekly output of a production process is shown below, together with data for labor and material inputs.
Assume a 40-hour week and an hourly wage of $18.
Material cost is $11 per running foot.
Overhead is charged weekly at the rate of $1800 plus 0.5 times direct labor cost.
Compute the multi-factor productivity for the process for each week and compute the percentage change in productivity from week 1 to week 2.
You must show all calculations in order to receive credit for this assignment.
Please round intermediate calculations to 3 decimal points and your final answer to 2 decimal points.
|
Week
|
Output
|
# Workers
|
Material (ft.)
|
|
1
|
8580
|
7
|
2800
|
|
2
|
7760
|
6
|
2450
|