Compute the multifactor productivity measure for each of theweeks shown for production of chocolate bars. Assume 40-hour weeksand an hourly wage of $16. Overhead is 1.5 times weekly labor cost.Material cost is $9 per pound. (Round your answers to 2decimal places.)
WeekOutput (units)WorkersMaterial (lbs)130,0005450235,0007500330,0007500440,0007600WeekMFP (Output / Total Cost)1234
Expert Answer
WeekOutput (units)Normal WorkersTotal Hours/WeekWageOverhead CostMaterial (lbs)Material CostTotal CostMFP (Output / Total Cost)130,0005200320048004504050120502.49235,0007280448067205004500157002.23330,0007280448067205004500157001.91440,0007280448067206005400166002.41
Total Hours/Week = Normal Workers * 40
Normal Wage = Total Hours/Week * 16
Overhead Cost = Normal Wage * 1.5
Material Cost = Material (lbs) * 9
Total Cost = Normal Wage + Overhead Cost + Material Cost
MFP = Output / Total Cost