7. The following table shows data on the average number of customers processed by several bank ser-vice units each day. The hourly wage rate is $25, the overhead rate is 1.0 times labor cost, and mate-rial cost is $5 per customer.CustomersTTUnitEmployeesProcessed/DayA43640C8.60320a. Compute the labor productivity and the multifactor productivity for each unit. Use an eight-hourday for multifactor productivity.b. Suppose a new, more standardized procedure is to be introduced that will enable each employeeto process one additional customer per day. Compute the expected labor and multifactor produc-tivity rates for each unit.

Productivity is the ability of the company or employees to produce the products and services…

Answered: a. Compute the labor productivity and…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $25, the overhead rate is 1.0 times labor cost, and material cost is $5 per customer.Unit EmployeesCustomersProcessed/DayA 4 36B 5 40C 8 60D 3 20a. Compute the labor productivity and the multifactor productivity for each unit. Use an eighthour day for multifactor productivity.b. Suppose a new, more standardized procedure is to be introduced that will enable each employeeto process one additional customer per day. Compute the expected labor and multifactor productivity rates for each unit.
A work group of 10 workers in a certainmonth produced 7200 units of output working 8hr/day for 22 days in the month. Determine thelabor productivity ratio using (a) units of outputper worker-hour and (b) units of output perworker-month. (c) Suppose that in the nextmonth, the same work group produced 6800units but, there were only 20 workdays in themonth. For each productivity measure in (a)and (b), determine the productivity index forthe next month using the prior month as abase.
The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $25, the overhead rate is 1.0 times labor cost, and material cost is $5 per customer.Unit EmployeesCustomersProcessed/DayA 4 36B 5 40C 8 60D 3 20a. Compute the labor productivity and the multifactor productivity for each unit. Use an eighthour day for multifactor productivity.
Given the following information, calculate the multifactor productivity in terms of revenue per multifactor cost. (In other words, use money in the numerator and denominator.)Units produced: 5,000Standard price: $30/unitLabor input: 500 hoursCost of labor: $25/hourCost of materials: $5,000Cost of overhead: 2x labor costA) State the formulaB) Determine the unit of measure for the numeratorC) Determine the unit of measure for the denominatorD) Calculate ProductivityD) Interpret the results
Lillian Fok is president of Lakefront Manufacturing,a producer of bicycle tires. Fok makes 1,000 tires per day with thefollowing resources:Labor: 400 hours per day @ $12.50 per hourRaw material: 20,000 pounds per day @ $1 per poundEnergy: $5,000 per dayCapital costs: $10,000 per day What is the labor productivity per labor-hour for these tires atLakefront Manufacturing?b) What is the multifactor productivity for these tires atLakefront Manufacturing?c) What is the percent change in multifactor productivity if Fokcan reduce the energy bill by $1,000 per day without cuttingproduction or changing any other inputs?
Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following resources: Labor: 400 hours per day @ $12.00 per hour Raw Material: 20,000 pounds per day @ $1.00 per pound Energy: $5,250 per day Capital: $10,000 per day a) Labor productivity per labor hour for these tires = 2.502.50 tires/labor hour (round your response to two decimal places). b) Multifactor productivity for these tires = 0.02500.0250 tires/dollar (round your response to four decimal places). c) The percent change in multifactor productivity if Fok can reduce the energy bill by $1,000 per day without cutting production or changing any other inputs = nothing% (enter your response as a percentage rounded to two decimal places). Note: calculate the new multifactor productivity to four…
1. Nasrin, Rashed and Tahmid run a Chocolate manufacturing company. Their productionruns 30-hour per week and they pay $6 per hour to their labors. Material cost is $3.5 per lbs.Machine productivity is 2.5 times weekly labor cost. Overhead is $300 per week. The weeklyproductivity figures are given below:Weeks Output (Units) Labors Material (lbs)1 1400 8 362 1500 9 343 1250 6 334 1300 7 35 a) Compute multi-factor productivity of machine and material for each of the monthsshown for their Chocolate manufacturing firm.b) Compute multi-factor productivity of Labor and Overhead for each of the months shownfor their Chocolate manufacturing firm.c) Compute total productivity measure for each of the months shown for their Chocolatemanufacturing firm.d) What do the productivity figures suggest? undefined
The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $25, the overhead rate is 1.0 times labor cost, and material cost is $5 per customer. Compute the labor productivity and the multifactor productivity for each unit. Use an eight-hour day for multifactor productivity. Unit Workers Customers Processed/Days A 4 36 B 5 40 C 8 60 D 3 20
Kleen Karpets cleaned 5000 square feet of rugs last month, consuming 400 hours of labor at $10 per hour, 100 gallons of solvent at $5 per gallon, and 20 days of machine rental at $25 per day. What is the multifactor productivity for the month as measured by square feet of rugs per dollar spent?
Alyssa’s Custom Cakes currently sells 5 birthday, 2 wedding, and 3 specialty cakes each month for $50, $150, and $100 each, respectively. The cost of labor is $50 per hour including benefits. It takes 90 minutes to produce a birthday cake, 240 minutes to produce a wedding cake, and 60 minutes to produce a specialty cake. Alyssa’s current multifactor productivity ratio is 1.25. a. Use the multifactor productivity ratio provided to calculate the average cost of the cakes produced. b. Calculate Alyssa’s labor productivity ratio in dollars per hour for each type of cake.c. Based solely on the labor productivity ratio, which cake should Alyssa try to sell the most? d. Based on your answer in part (a), is there a type of cake Alyssa should stop selling?
Alyssa's Custom Cakes currently sells 44 birthday, 22 wedding, and 22 specialty cakes each month for $5050, $150150, and $100100 each, respectively. Alyssa's current multifactor productivity ratio is 1.351.35. Part 2 a. Assuming each cake costs the same to make, the average cost to produce a cake is $enter your response here per cake. (Enter your response rounded to two decimal places.)
ABC Corporation is a furniture manufacturing company working on a 40 hour per week basis makes 135 chairs. The sales price is $75 each, and the company has the following costs:• Direct materials $790• Direct labor $360• Overhead $550Required:a. Calculate the productivity of the company.b. What will be the new productivity if the company decides to make 150 chairs per week?c. If the company decides to improve productivity through materials costs reduction only, how much these costs must be reduced in order to achieve a 10 percent increase in total productivity?d. If the company repeats the same exercise as in (c) above, but through labor costs reduction, how much these costs must be reduced in order to achieve a 10 percent increase in total productivity?

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