Question

At​ Symtecks, the output of a process is valued at ​$110110 per unit. The cost of labor is ​$5555 per hour including benefits. The accounting department provided the following information about the process for the past four​ weeks:                                                                                       LOADING... Week 1 Week 2 Week 3 Week 4 Units Produced 1 comma 1551,155 1 comma 3101,310 1 comma 0961,096 981981 Labor​ ($) 12 comma 70512,705 14 comma 89214,892 10 comma 60310,603 9 comma 5269,526 Material​ ($) 20 comma 59520,595 24 comma 52324,523 20 comma 44220,442 18 comma 41418,414 Overheads​ ($) 9 comma 6079,607 10 comma 53010,530 8 comma 7368,736 7 comma 8487,848 a. The multifactor productivity ratio for week 1 is nothing.

Answer 1

Units produced in week 1 = 1155

Total value of units produced in week 1 = $110 x 1155 = $127050

Cost data for week 1 :

Labor = $12,705

Material = $20,595

Overhead cost = $9607

Total cost for week 1 = Labor cost + Material cost + Overhead cost = $12705 + $20595 + $9607 = $42907

Multifactor productivity ratio for week 1 = Total value of units produced / Total cost = 127050/42907 = 2.961

MULTIFACTOR PRODUCTIVITY RATO FOR WEEK 1 = 2.961