Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
Bartleby Related Questions Icon

Related questions

bartleby

Concept explainers

Question
100%

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: 5,000
Standard price: $30/unit
Labor input: 500 hours
Cost of labor: $25/hour
Cost of materials: $5,000
Cost of overhead: 2x labor cost

A) State the formula

B) Determine the unit of measure for the numerator

C) Determine the unit of measure for the denominator

D) Calculate Productivity

D) Interpret the results

Expert Solution
Check Mark
Blurred answer
Knowledge Booster
Operations Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • 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?
    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?
    A caterer prepares 2,000 meals for a client’ company event consuming the following resources: Labor → 6 hours @ $20 per hour  Materials → $8 per meal Beverages → $4 per meal  What is labor productivity? What is the multifactor productivity? To produce 2,000 pieces of luggage, a leather goods firm spends $1,000 on labor and $500 on materials. What is productivity? If the firms can increase production to 2,200 pieces of luggage with the same labor and material cost, what is the productivity? What is the percentage change? If the labor cost is reduced to $800 and materials increased to $600, what is the productivity to produce 2,200 pieces of luggage?  An accounting firm can produce 8 monthly reports in three 8-hour shifts. What is the productivity of this firm? If this firm hires two additional workers, what would be the productivity of this firm? What is the percentage of productivity gain?
  • The manager of a crew that installs wood floors has tracked the crew’s output over the past several weeks. Each worker works 40 hours per week, and earns $22 per hour. The wholesale cost of lumber to the company is $9 per square foot, and the company charges its customers $25 per square foot of flooring installed. Overhead rate is 100% a) using the best formula to determine labor productivity, calculate labor productivity for each of the weeks b) calculate multifactor productivity for each week using the dollar revenue of flooring installed in the numerator week crew size lumber used flooring installed week 1 4 480 420 week 2 3 371 325
    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?
    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…
  • 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 ​@ ​ $12.50 per hour Raw​ Material: 21,000 pounds per day​ @ ​$1.00 per pound ​Energy: ​$5,000 per day ​Capital: ​$10,000 per day ​a) Labor productivity per labor hour for these tires​ = 2.52.5 ​tires/labor hour ​(round your response to two decimal​ places). ​b) Multifactor productivity for these tires​ = 0.02440.0244 ​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).
    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 shoe factory produces 95,000 shoes each week. The equipment used costs $15,000 and will remain productive for three years. The labor cost per year is $16,000.  What is the productivity measure of “units of output per dollar of input” averaged over the three-year period?   Hint: Productivity = total units produced divided by the total labor cost plus total equipment cost
    • SEE MORE QUESTIONS
    Recommended textbooks for you
  • Practical Management Science
    Operations Management
    ISBN:9781337406659
    Author:WINSTON, Wayne L.
    Publisher:Cengage,
    Operations Management
    Operations Management
    ISBN:9781259667473
    Author:William J Stevenson
    Publisher:McGraw-Hill Education
    Operations and Supply Chain Management (Mcgraw-hi...
    Operations Management
    ISBN:9781259666100
    Author:F. Robert Jacobs, Richard B Chase
    Publisher:McGraw-Hill Education
  • Business in Action
    Operations Management
    ISBN:9780135198100
    Author:BOVEE
    Publisher:PEARSON CO
    Purchasing and Supply Chain Management
    Operations Management
    ISBN:9781285869681
    Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
    Publisher:Cengage Learning
    Production and Operations Analysis, Seventh Editi...
    Operations Management
    ISBN:9781478623069
    Author:Steven Nahmias, Tava Lennon Olsen
    Publisher:Waveland Press, Inc.
  • Practical Management Science
    Operations Management
    ISBN:9781337406659
    Author:WINSTON, Wayne L.
    Publisher:Cengage,
    Operations Management
    Operations Management
    ISBN:9781259667473
    Author:William J Stevenson
    Publisher:McGraw-Hill Education
    Operations and Supply Chain Management (Mcgraw-hi...
    Operations Management
    ISBN:9781259666100
    Author:F. Robert Jacobs, Richard B Chase
    Publisher:McGraw-Hill Education
    Business in Action
    Operations Management
    ISBN:9780135198100
    Author:BOVEE
    Publisher:PEARSON CO
    Purchasing and Supply Chain Management
    Operations Management
    ISBN:9781285869681
    Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
    Publisher:Cengage Learning
    Production and Operations Analysis, Seventh Editi...
    Operations Management
    ISBN:9781478623069
    Author:Steven Nahmias, Tava Lennon Olsen
    Publisher:Waveland Press, Inc.