Question

Problem 2-3 Compute the multifactor productivity measure for each of the weeks shown for production of chocolate bars. Assume 40-hour weeks and an hourly wage of $16. Overhead is 1.5 times weekly labor cost Material cost is $9 per pound. (Round your answers to 2 decimal places.) Workers Material (1lbs) t (units) 25,000 30,000 35,000 45,000 400 450 550 650 12 MFP (Output/Total Cost)

Answer 1

Answer

Week	Output	Total Cost	MFP [ANSWER]
1	25,000	$10,000	2.50
2	30,000	$12,050	2.49
3	35,000	$16,150	2.17
4	45,000	$25,050	1.80

--Working

Week	Workers	Total Hours	Total Labor cost	Overhead	Material (lbs)	Material Cost	Total Cost
	[A]	[B = A x 40 hours]	[C = B x $ 16]	[D = C x 1.5]	[E]	[F = E x $ 9]	[G = C+D+F]
1	4	160	$2,560	$3,840	400	$3,600	$10,000
2	5	200	$3,200	$4,800	450	$4,050	$12,050
3	7	280	$4,480	$6,720	550	$4,950	$16,150
4	12	480	$7,680	$11,520	650	$5,850	$25,050