Answer to Question #264820 in Management for Bobby

Question

1.     AJ company processes fruits and vegetables. It can produce 400 cases of canned mangoes in one-half hour with four workers.  

a.      What is labor productivity?

b.      A wrapping-paper company produced 2,000 rolls of paper one day. Labor cost was $160, material cost was $50, and overhead was $320. Determine the multifactor productivity.

Answer 1

(a) Labor productivity = Quality Produced / Labors Hours = 400 cases (4 workers x 1/2 hours / workers) = 200 cases per labor hour

(b) Multifactor productivity = Quality produced at standard price/(Labor cost + Material cost + Overhead) = 2,000 rolls x $ 1/ ($160+ $ 50 + $320) = 3.77 rolls output per dollars