Problem 2-7 The following table shows data on the average number of customers pr

Question

Problem 2-7 The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $25, the overhead rate is 1.0 times labor cost, and material cost is $7 per customer usto / Day 36 46 60 32 a. Compute the labor productivity and the muitifactor productivity for each unit Use an eight-hour day for productivity (Round your "Labor Productivity" answers to 1 decimal place and "Multifactor Productivity" answers to 3 decimal places.) Labor Productivity (customers per day per worker) Multifactor Productivity (customers per dollar 36 40 60 24 Unit input) b. Suppose a new, more standardized procedure is to be introduced that will enable each emplovee to

Explanation / Answer

a)

Labour Productivity

(Customers per day per worker)

Multifactor Productivity

(Customer per dollar input)

Explanation:

LP

(3)/ (2)

MFP

(3)/(7)

b)

Labour Productivity

(Customers per day per worker)

Multifactor Productivity

(Customer per dollar input)

Unit

Labour Productivity

(Customers per day per worker)

Multifactor Productivity

(Customer per dollar input)

A 7.2 0.0159 B 9.2 0.0198 C 7.5 0.0166 D 10.67 0.0225

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