PRODUCTIVITY ASSIGNMENT
Compute the multifactor productivity measure for each of the weeks shown. Assume 40-hour
weeks and hourly wages of Php 50. Overhead is 1.2 times weekly labor cost. Material cost is Php
300 per pound.
Week Output (units) Workers Material (lbs)
1 40000 5 420
2 45000 6 490
3 50000 6 480
4 55000 6 500
Answer here--------
Week Output Labor Material Overhead Total Cost Productivity
Cost Cost Cost
1 40 000 10 000 126 000 12 000 148 000 0.27
2 45 000 12 000 147 000 14 400 173 400 0.26
3 50 000 12 000 144 000 14 400 170 400 0.29
4 55 000 12 000 150 000 14 400 176 400 0.31
1. How much is the increase or decrease in productivity from week 3 to 4?
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Week 3 = 50 000 ÷ 40 = 1 250
Week 4 = 55 000 ÷ 40 = 1 375
Change in productivity = [(1 375–1 250) ÷ 1 250] x 100 = 10%
The productivity from Week 3 to Week 4 increased by 10%.