A) A company that processes fruits and vegetables is able to produce 400 cases of canned pineapple in one-half hour with four workers. What is labor productivity (also known as cases per labor hour)? Use the formula below to compute your answer. Show all your computations.
Formula: Labor productivity = Quantity produced divided by labor hours
B) A paper mill company produced 2,000 rolls of paper in one day. Standard price is $1 per roll. Labor cost was $160, material cost was $50 and overhead was $320. Determine the multifactor productivity (as known as the number of rolls per one dollar of input)? Use the formula below to compute your answer. Show your computations.
Formula: productivity = Quantity produced at the standard price divided by the sum of the Labor cost + Material cost + Overhead