Course Solutions Uncategorized (Answered) : In producing 138 units of our signature product, we require 88 hours of labor, 476 dollars worth of overhead, and 73 units of ma

(Answered) : In producing 138 units of our signature product, we require 88 hours of labor, 476 dollars worth of overhead, and 73 units of ma

In producing 138 units of our signature product, we require 88 hours of labor, 476 dollars worth of overhead, and 73 units of material. Labor costs 40 per hour and material costs 16 per unit. A unit of output is work 435. What is our multifactorial productivity?

Expert Answer


Total material cost = 16*73=$1,168

Total labor cost = 40*88=$3,520

total overhead = $476

Total input cost = 1168+3520+476= $5,164

Unit output= $35, for 138 units = $4830

Multifactor Productivity = Output/input

= 4830/5164 = 94%

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