Compute multifactor productivity measure for each week
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