Question

Compute the average multifactor productivity for this process.

ogether with labor and material (X-ray film) inputs. The standard charge valueofte data f per unit. Overhead is charged weekly at a rate of $1,500 plus 0.5 times direct l $125 Assume a forty-hour week and an hourly wage of $16. Material cost is o Compute the average multifactor productivity for this process. b. Does a targei piu. ts. The standard charge value of the output is 94 The weekly output of a radiology processis shown in Table EX 9.4, together mes direct labor cost. $10 per image. Table EX 9.4 # of X-Ray Films 2,840 2,550 #ofX-Ray Technicians Output 412 Week 364 EXER #Of X-Ray Technicians #ofX-Ray Films 2,720 2,790 392 408 4

Answer 1

Multifactor Productivity = Output/Input

We have to calculate the average multifactor productivity.

Here,

Total Output = 412+364+392+408 = 1576

Dollar Value of Output = 1576*125 = 197000

Input = Total Labor Cost + Total Material cost + Total Overhead Cost

Total Labor Used = 6+5+5+6 = 22

Total Labor Cost = 22*40*16 = 14080

Total Material Used = 2840 + 2550 + 2720 + 2790 = 10900

Total Material Cost = 10900*10 = 109000

Total Overhead Cost = 4*1500 + 0.5*14080 = 13040

Input = 14080 + 109000 + 13040 = 136120

Multifactor Productivity = 197000/136120

Multifactor Productivity = 1.4473