Course Solutions Uncategorized (Answered) : Last year, to produce 244 units of our signature product, we required 124 hours of labor, 413 dollars worth of overhead, and 87

(Answered) : Last year, to produce 244 units of our signature product, we required 124 hours of labor, 413 dollars worth of overhead, and 87

Last year, to produce 244 units of our signature product, we required 124 hours of labor, 413 dollars worth of overhead, and 87 units of material. During that time period, labor cost 22 per hour and material cost 35 per unit, and a unit of output was worth 525. If this year everything stays the same except a 9 decline in the value of a unit of output, what will be our multifactorial productivity?

Expert Answer


UO L O M MI=(L+O+M) UO/MI
Units produced Labor hours OH Material Multifactor input Productivity
244 124 413 87
Cost rate 525 22 1 35
Cost 128100 2728 413 3045 6186 20.71 Current
UO L O M MI=(L+O+M) UO/MI
Units produced Labor hours OH Material Multifactor input Productivity
235 124 413 87
Cost rate 525 22 1 35 Ans
Cost 123375 2728 413 3045 6186 19.94 New

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