What is the Multifactor productivity for the Blue Space Inc. if they have the following data?...
What is the Multifactor productivity for the Blue Space Inc. if they have the following data?
Units produced: 25,000
Standard price: $30/unit
Labor input: 500 hours
Cost of labor: $25/hour
Cost of materials: $10,000
Cost of overhead: 2x labor cost
Multifactor Productivity= Output/Labor+Material+Overhead
Homework Answers
VALUES
LABOR = 12500
MATERIAL = 10000
OVERHEAD = 25000
OUTPUT = 750000
PRODUCTIVITY = OUTPUT / TOTAL INPUT
PRODUCTIVITY = 750000 / (12500 + 10000 + 25000) = 15.79
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What is the Multifactor productivity for the Blue Space Inc. if
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