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 $8 per customer. Unit Employees Customers Processed / Day A 5 34 B 5 42 C 7 66 D 3 22 a. Compute the labor productivity and the multifactor productivity for each unit. Use an eight-hour day for multifactor productivity. (Round your "Labor Productivity" answers to 1 decimal place and "Multifactor Productivity" answers to 3 decimal places.) Unit Labor Productivity (customers per day per worker) Multifactor Productivity (customers per dollar input) A B C D b. Suppose a new, more standardized procedure is to be introduced that will enable each employee to process one additional customer per day. Compute the expected labor and multifactor productivity rates for each unit. (Round your "Labor Productivity" answers to 1 decimal place and "Multifactor Productivity" answers to 3 decimal places.) Unit Labor Productivity (customers per day per worker) Multifactor Productivity (customers per dollar input) A B C D

Explanation / Answer

Answer:

A B C D (a) Employees 5 5 7 3 (b) Customers 34 42 66 22 Wages 200 200 200 200 Overhead 200 200 200 200 Materials $8 per customer 272 336 528 176 ( c) Total Cost Per Day in $ 672 736 928 576 (d) Labor Productivity (b/a) 6.8 8.4 9.4 7.3 ( e) Multifactor Productivity(b/c) 0.051 0.057 0.071 0.038 (f) Revised Customers 35 43 67 23 (g) Labor Productivity (f/a) 7.0 8.6 9.6 7.7 (h) Multifactor Productivity(f/c) 0.052 0.058 0.072 0.040

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