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    Homework 1

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    Rhen Louise DelaCruz
    The document discusses productivity measures for different scenarios including chocolate bar production, shopping cart production, and bank customer service. It provides data on labor costs, material costs, output and asks the reader to calculate labor and multifactor productivity under the original and new hypothetical scenarios.

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    Homework 1

    Uploaded by

    Rhen Louise DelaCruz
    18 views2 pages
    The document discusses productivity measures for different scenarios including chocolate bar production, shopping cart production, and bank customer service. It provides data on labor costs, material costs, output and asks the reader to calculate labor and multifactor productivity under the original and new hypothetical scenarios.

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    © © All Rights Reserved

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    The document discusses productivity measures for different scenarios including chocolate bar production, shopping cart production, and bank customer service. It provides data on labor costs, material costs, output and asks the reader to calculate labor and multifactor productivity under the original and new hypothetical scenarios.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    18 views2 pages

    Homework 1

    Uploaded by

    Rhen Louise DelaCruz
    The document discusses productivity measures for different scenarios including chocolate bar production, shopping cart production, and bank customer service. It provides data on labor costs, material costs, output and asks the reader to calculate labor and multifactor productivity under the original and new hypothetical scenarios.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Homework 1

    Chapter 2 Productivity
    3. Compute the multifactor productivity measure for each of the weeks shown for production of
    chocolate bars. What do the productivity figures suggest? Assume 40-hour weeks and an
    hourly wage of $12. Overhead is 1.5 times weekly labor cost. Material cost is $6 per pound.

    4. A company that makes shopping carts for supermarkets and other stores recently purchased
    some new equipment that reduces the labor content of the jobs needed to produce the
    shopping carts. Prior to buying the new equipment, the company used five workers, who
    produced an average of 80 carts per hour. Workers receive $10 per hour, and machine cost
    was $40 per hour. With the new equipment, it was possible to transfer one of the workers to
    another department, and equipment cost increased by $10 per hour while output increased by
    four carts per hour.
    a. Compute labor productivity under each system. Use carts per worker per hour as the
    measure of labor productivity.
    b. Compute the multifactor productivity under each system. Use carts per dollar cost
    (labor plus equipment) as the measure.
    c. Comment on the changes in productivity according to the two measures, and on
    which one you believe is the more pertinent for this situation.

    7. The following table shows data on the average number of customers processed by several
    bank service units each day. The hourly wage rate is $25, the overhead rate is 1.0 times labor
    cost, and material cost is $5 per customer.

    a. Compute the labor productivity and the multifactor productivity for each unit. Use an
    eight-hour day for multifactor productivity.
    b. Suppose a new, more standardized procedure is to be introduced that will enable each
    employee to process one additional customer per day. Compute the expected labor and
    multifactor productivity rates for each unit.

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