Question: ACME Corporation received data below for its production unit.
Input:
Direct Labor Hours of Production 500 hours
Indirect Labor Hours 150 hours
Direct Labor Rate $7.50/hour
Indirect Labor Rate $20/hour
Raw material $30,000
Component parts $15,350
Output:
50,000 cages
$4.50/unit (0-20,000 units)
$4.25/unit (20,001-40,000 units)
$4.00/unit (40,000 and more)
a. Find Direct Labor Productivity of ACME Corporation
b. Find Total Productivity of ACME Corporation
c. How can we improve total productivity of ACME Corporation by 10%?