Apex Brothers builds birdhouses for its customers. The average birdhouse is priced at $30. Labor costs for a birdhouse average $10 per birdhouse, material costs average $3 per birdhouse, and overhead costs average $5 per birdhousea.What is the labor productivity?b.What is the materials productivity?c.What is the total productivity?

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Asked Jan 18, 2019
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Apex Brothers builds birdhouses for its customers. The average birdhouse is priced at $30. Labor costs for a birdhouse average $10 per birdhouse, material costs average $3 per birdhouse, and overhead costs average $5 per birdhouse

a.What is the labor productivity?
b.What is the materials productivity?
c.What is the total productivity?

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Expert Answer

Step 1

Step1: Calculating the value of labour productivity. We have,

Labour productivity is the ratio of output to labour input. The formula of labour productivity is as follow:

Labour productivity = Value of output / Value of labour inputs

Here,

Value of output = $ 30

Value of labour input = $ 10

By substituting these value in the above formula. We get;

Labour productivity = $ 30 / $ 10

Labour productivity = 3 times

Therefore, the labour productivity for output shall be 3 times.

Step 2

Step2: Calculating the value of material productivity. We have,

Material productivity is the ratio of output to material input. The formula of material productivity is as follow:

Material Productivity = Value of output / Value of material input

Here,

Value of output = $ 30

Value of materi...

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