Posey Ceramics makes ceramic vases for a chain of department stores. The output and cost figures over the past four weeks are shown here. Labor costs $20 an hour, and materials are $2 a pound. Week 1 2 3 4 Units of output 2000 4000 5000 7000 No. of workers 4 4 5 6 Hours per week per worker 40 48 56 70 Material (lbs) 286 570 720 1000 What is the average multi-factor productivity across all weeks? 0.67 4.96 1.7 7.0
Answer:
| hourly wage rate= | 20 |
| Material cost per pound | 2 |
| Week | No. of workers = N | Output units | hours per week per worker= H |
Labor cost (N*H*hourly wage) |
Material | Material cost= (Material*Material cost per pound) |
Total cost (Labor cost+ Material cost) |
MFP (Output/Total cost) |
| 1 | 4 | 2,000 | 40 | 3,200 | 286 | 572 | 3,772 | 0.530 |
| 2 | 4 | 4,000 | 48 | 3,840 | 570 | 1,140 | 4,980 | 0.803 |
| 3 | 5 | 5,000 | 56 | 5,600 | 720 | 1,440 | 7,040 | 0.710 |
| 4 | 6 | 7,000 | 70 | 8,400 | 1,000 | 2,000 | 10,400 | 0.673 |
the average MFP= (0.53+0.80+0.7160.67)/4= 0.67
Posey Ceramics makes ceramic vases for a chain of department stores. The output and cost figures...