|
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
$8 per customer.
|
|
Unit
|
Employees
|
Customers Processed / Day
|
|
A
|
4
|
32
|
|
B
|
4
|
46
|
|
C
|
9
|
60
|
|
D
|
3
|
24
|
|
|
||
|
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
|
8.0
 |
0.011
|
|
B
|
11.5
|
0.016
|
|
C
|
6.7
|
0.010
|
|
D
|
8.0
|
0.011
|
|
|
||
|
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
|
9.0
|
0.0126
|
|
B
|
12.5
|
0.0169
|
|
C
|
7.7
|
0.0109
|
|
D
|
9.0
|
0.0126
|
|
|
||
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