Please answer in details showing the work . The manager of a crew that installs

Question

Please answer in details showing the work .

The manager of a crew that installs carpets has tracked the crew's output over the past several weeks, and the data are as follows: Week Crew Size Yards Installed Yards of Material Used 480 250 410 N- 210 a. Calculate labor productivity for each week, assuming each worker works 35 hours. b. Suppose the hourly cost of labor is $20, the cost of materials is $12 per yard, and the overhead rate is 120%. The company charges customers $32 per yard installed Calculate multifactor productivity for each of the weeks.

Explanation / Answer

a) Week 1 -

Labor productivity = Units produced per week/Labor hours per week= 410/(4*35) = 2.9286 units/hour

Week 2 -

Labor productivity = Units produced per week/Labor hours per week= 210/(2*35) = 3 units/hour

b) Labor cost per hour = 20 $

Cost of materials = 12 $/yard

Overhead Rate = 120%

Price = 32 $/yard

Week 1 -

Multifactor productivity = Value of units sold/(Labor charges+Material cost+Overhead cost)

MFP = (410*32)/(20*4*35+12*480+1.2*480*12) = 0.848

Week 2 -

Multifactor productivity = Value of units sold/(Labor charges+Material cost+Overhead cost)

MFP = (210*32)/(20*2*35+12*250+1.2*250*12) = 0.84

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