It takes the Blacksburg Shipyard 52 weeks with 165 workers to build a small tank

Question

It takes the Blacksburg Shipyard 52 weeks with 165 workers to build a small tanker. Material costs are $33 million and overhead costs are $2 million. Workers cost $17 per hour including benefits and work 40 hours per week. The ship sells for $56 million. To determine the multifactor productivity ratio, the spreadsheet shown below can be used (where yellow background is input, light green intermediate results and dark green the final result):

PLEASE ANSWER QUESTIONS A,B and C. Only indicate correct letter. No solutions needed.

a. A correct calculation of the Labor cost in cell C14 can be expressed as:

A.=C10

B.=C14+C15+C16

C.=C4*C5*C8*C9

D.=C10/C17

E.none of these

b. A correct calculation of the Total Input in cell C17 can be expressed as:

A.none of these

B.=C4*C5*C8*C9

C.=C10

D.=C14+C15+C16

E.=C10/C17

c. A correct calculation of the Multi-factor Productivity in cell E18 can be expressed as:

A.=C10

B.none of these

C.=C4*C5*C8*C9

D.=C14+C15+C16

E.=C10/C17

1 Blacksburg Shipyard 2 3 Data 4 time 5 # of workers 6 material cost 7 overhead cost 8 pay rate 9 work rate 10 Selling Price weeks our hours/week Dollar amounts below in mill ions 12 Output 13 Input 14 Labor 15 Material 16 Overhead 17 TOTAL 18 Multi-factor Productivity =

Explanation / Answer

a) option C, C4*C5*C8*C9

total Labor cost = no. of weeks*no. of workers*pay rate*work rate

the rate at which they are paid multiplied by hours they work per week multipled by no. of weeks multiplied to no of workers.

b) option D.=C14+C15+C16

the total input cost is nothing but sum of labor, material and overhead cost

c) option E.=C10/C17

Multi-factor Productivity is amount of goods or sales produced to the amount of inputs used: selling price/total input

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