Compute the multifactor productivity measure for each of the weeks shown for production of chocolate bars. What do the productivity figures suggest? Assume 40-hour weeks and an hourly wage of $12. Overhead is 1.5 times weekly labor cost. Material cost is $6 per pound. Standard price is $140 per unit
Week Output(units) Workers Materials(lbs)
1 30,000 6 450
2 33,600 7 470
3 32,000 7 460
4 35,400 8 480
Answer:
Week MFP Consider standard price
1
2
3
4