Labor-material-machine and overhead productivity


A company produces two types of measuring devices. Price of per unit of the 1st and 2nd type of the device is $10 and & $12 respectively. Material cost to produce the devices is 40% of their prices. The company used ten workers, who can produce an average of 30 and 50 devices of 1st and 2nd types per day. Workers receive $10 per day and machine and overhead cost is $120 and $100 per day respectively.

a. Compute labor, material, machine and overhead productivity.

b. Compute the overall productivity.

c. If production time of each 2nd type device is 25% more than that of 1st type then compute overall productivity of 1st and 2nd types of the product.

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Finance Basics: Labor-material-machine and overhead productivity
Reference No:- TGS050697

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