Help Save & Exit Submit 8 Two types of cars (Deluxe and Limited) were produced b

ID: 412362 • Letter: H

Question

Help Save & Exit Submit 8 Two types of cars (Deluxe and Limited) were produced by a car manufacturer last year Quantities sold, price per unit, and labor hours are given below 6,250 units sold 10,500/car 21,250 hour 31,260 hours Limited car S 12/hour 15/hour points Labor, Deluxe Labor, Liniced What is the labor productivity for each car? Provide two sets of figures: units per labor hour, and dollar of output per dollar of labor expense. (Round your answers to 2 decimal places.) Type here to search

Explanation / Answer

For Deluxe Car,

Labor Productivity (Units / hr.) = No. of units of deluxe car produced / No. of labor hours

Labor Productivity (Units / hr.) = 3145/21250 = .148 or .15 units / hr.

Labor productivity (Dollars) = Total value of deluxe cars / cost of labor

Labor productivity (Dollars) = (3145*8500)/(21250*12)

Labor productivity (Dollars) = $104.83

For limited Car,

Labor Productivity (Units / hr.) = 6250/31260 = .1999 or .20 units / hr.

Labor productivity (Dollars) = (6250*10500)/(31260*15)

Labor productivity (Dollars) = $139.96

So, following table is prepared on the basis of above calculation:

Labor Productivity

units/hr.

dollars

Deluxe car

0.15

104.83

Limited Car

0.20

139.96