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Saturday, 23 November 2013

The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $40, the overhead rate is 1.0 times labor cost, and material cost is $6 per customer. Unit Employees Customers Processed / Day A 3 30 B 7 46 C 8 56 D 3 28 a. Compute the labor productivity and the multifactor productivity for each unit. Use an eight-hour day for multifactor productivity. (Round your "Labor Productivity" answers to 1 decimal place and "Multifactor Productivity" answers to 3 decimal places.) Unit Labor Productivity Multifactor Productivity A B C D b. Suppose a new, more standardized procedure is to be introduced that will enable each employee to process one additional customer per day. Compute the expected labor and multifactor productivity rates for each unit. (Round your "Labor Productivity" answers to 1 decimal place and "Multifactor Productivity" answers to 4 decimal places.) Unit Labor Productivity Multifactor Productivity A B C D rev: 03_15_2012 Explanation: a. (1) Unit (2) Employees (3) Customers processed (4) Labor Cost @$40 (5) Material Cost @$6 (6) Overhead @1 (7) Total Cost (8) LP (3) ÷ (2) (9) MFP (3) ÷ (7) A 3 30 960 180 960 2,100 10.0 0.014 B 7 46 2,240 276 2,240 4,756 6.6 0.010 C 8 56 2,560 336 2,560 5,456 7.0 0.010 D 3 28 960 168 960 2,088 9.3 0.013 b. (1) Unit (2) Employees (3) Customers processed (4) Labor Cost @$40 (5) Material Cost @$6 (6) Overhead @1 (7) Total Cost (8) LP (3) ÷ (2) (9) MFP (3) ÷ (7) A 3 33 960 198 960 2,118 11.0 0.0156 B 7 53 2,240 318 2,240 4,798 7.6 0.0110 C 8 64 2,560 384 2,560 5,504 8.0 0.0116 D 3 31 960 186 960 2,106 10.3 0.0147

The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $40, the overhead rate is 1.0 times labor cost, and material cost is $6 per customer.
  
Unit Employees   Customers Processed / Day
A 3 30
B 7 46
C 8 56
D 3 28

  
a.
Compute the labor productivity and the multifactor productivity for each unit. Use an eight-hour day for multifactor productivity. (Round your "Labor Productivity" answers to 1 decimal place and "Multifactor Productivity" answers to 3 decimal places.)
  
Unit         Labor
       Productivity
         Multifactor         Productivity
A    
B    
C    
D    

  
b.
Suppose a new, more standardized procedure is to be introduced that will enable each employee to process one additional customer per day. Compute the expected labor and multifactor productivity rates for each unit. (Round your "Labor Productivity" answers to 1 decimal place and "Multifactor Productivity" answers to 4 decimal places.)
  
Unit         Labor
       Productivity
            Multifactor
            Productivity
A  
B  
C  
D  


rev: 03_15_2012

Explanation:

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