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Susan Williams runs a small Flagstaff job shop where garments are made. The job

ID: 390221 • Letter: S

Question

Susan Williams runs a small Flagstaff job shop where garments are made. The job shop employs eight workers. Each worker is paid $12 per hour. During the f of March, each worker worked 45 hours. Together, they produced a batch of 144 garments. Of these garments, 54 were 'seconds' (meaning that they were flaw seconds were sold for $96 each at a factory outlet store. The remaining 90 garments were sold to retail outlets at a price of $200 per garment. What was the la productivity, in dollars per labor-hour, at this job shop during the first week of March? Labor productivity = dollars/labor hour round your response to two decimal places

Explanation / Answer

Total labor hours worked in the month of March

= Number of labors x Hours worked per labor

= 8 x 45

= 360 labor hours

Total sales value of production

= Sale value of seconds + Sale value of Normal garments

= Quantity of seconds x Rate + Quantity of normal x Rate

= 54 x $96 + 90 x $200

= $5,184 + $18,000

= $23,184

So, Labor productivity

= Value of garments sold / Total labor hours

= $23,184 / 360

= $ 64.4 per labor hour