Compute the multifactor productivity measure for an eight-hour day in which the usable output was 300 units, produced by three workers who used 600 pounds of materials. Workers have an hourly wage of $1 per pound . overhead is 1.5 times labor cost

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Accepted Answer

Multifactor productivity=[latex]\frac{Usable output}{Labor cost + Material cost + Overhead cost }[/latex]

=[latex]\frac{300 units}{(3 workers imes 8 hours imes \$ 20/hour) + (600 pounds imes \$ 1/pound)+(3 workers imes 8 hours imes \$ 20/ hour imes 1.50) }[/latex]

[latex] =\frac{300 units}{\$ 480 +\$ 600 + \$ 720 }[/latex]

= 167 units of output per dollar of input

Question P.2.3: Compute the multifactor productivity measure for an eight-ho...

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