Compute the average multifactor productivity for this process.
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
Compute the average multifactor productivity for this process. ogether with labor and material (X-ray film) inputs....
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