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%