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 placesExplanation / 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
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