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Assignment On Productivity.

There was a 1.73% decrease in productivity from week 3 to week 4. The productivity in week 3 was 2.89 and decreased to 2.84 in week 4, a difference of 0.05. This decrease of 0.05 divided by the week 3 productivity of 2.89 equals -1.73%, representing a 1.73% decrease in productivity from week 3 to week 4.

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42 views

Assignment On Productivity.

There was a 1.73% decrease in productivity from week 3 to week 4. The productivity in week 3 was 2.89 and decreased to 2.84 in week 4, a difference of 0.05. This decrease of 0.05 divided by the week 3 productivity of 2.89 equals -1.73%, representing a 1.73% decrease in productivity from week 3 to week 4.

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not you
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Week Output Labor Material Overhead Total Cost Productivity

Cost Cost Cost


(No. of (material (labor cost
workers x per week x per week x (OP/TC)
$12x40) $6) 1.5)

1  30,000  2,880  2,700  4,320  9,990  3.03

2  33,600  3,360  2,820  5,040  11,220  2.99

3  32,200  3,360  2,760  5,040  11,160  2.89

4  35,400  3,840  2,880  5,760  12,480 2.84

How much is the increase or decrease in productivity from week 3 to 4?

Productivity Growth = (Current Productivity - Prev. Productivity


= Week 4’s Productivity - Week 3’s Productivity)/Week 3’s Productivity
= (2.84 - 2.89)/ 2.89 = -1.730 or decrease of 1.73%

As seen from the table, there is a diminished 0.05 value in the productivity of week 4. As it was computed
using the formula for productivity growth, it resulted to -1.73% and with that, it can be concluded that
there is a decrease of 1.73% from week 3 to 4.

SOLUTIONS
LABOR COST = no. Of workers x amount of hourly wages x no. Of hours per week

No. of workers amount of hourly no. of hrs. Labor cost


wages per week

Week 1 6 12 40 $2,880
Week 2 7 12 40 $3,360
Week 3 7 12 40 $3,360
Week 4 8 12 40 $3,840

MATERIAL COST = material per week x material cost

Mat. Per week Material cost Material cost


Week 1 450 6 $2,700
Week 2 470 6 $2,820
Week 3 460 6 $2,760
Week 4 480 6 $2,880

OVERHEAD COST = labor cost x overhead

Labor cost overhead Overhead cost

Week 1 $2,880 1.5 $4,320


Week 2 $3,360 1.5 $5,040
Week 3 $3,360 1.5 $5,040
Week 4 $3,840 1.5 $5,760

TOTAL COST = Labor Cost + material cost + overhead cost


LC MC OHC TC
Week 1 2,880 2700 4,320 $9,900
Week 2 3360 2820 5,040 $11,220
Week 3 3360 2760 5,040 $11,160
Week 4 3840 2880 5,760 $12,480

MULTIFACTOR PRODUCTIVITY = Output/ Total Cost

output Total cost Multifactor Prod.


Week 1 30,000 9900 3.03
Week 2 33,600 11220 2.99
Week 3 32,200 11160 2.89
Week 4 35,400 12480 2.84

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