The manager of a crew that installs wood floors has tracked the crew\'s over the
ID: 468440 • Letter: T
Question
The manager of a crew that installs wood floors has tracked the crew's over the past several weeks. Each worker works 37 hours per week, $15 per hour. The wholesale cost of lumber to the company is $9 per square foot, and the company charges its customers $18 per square foot of flooring installed. Calculate labor productivity for each of the weeks shown. Suppose that in addition to labor cost and wholesale lumber cost, the firm's overhead is 190% of its labor cost. Calculate multifactor productivity for each week.Explanation / Answer
the labor productivity in week 1= 480*$9+ 420*$18= $4320+3360= $7680, average productivity= 7680/4= $1920
in week 2= 351*9+325*18= 3159+5850= $9009, average productivity= 9009/3= $3003
in week 3= 220*9+200*18= $2052+3600= $5652, avaraage productivity= 5652/2= $2826
b. if the labor cost becomes 190%, then the productivity=
each one works 37 hours per week and at cost of $15 per hour
the cost in week 1, with increased cost= 37*15* (1.9)*4= $4217.6, the net productivity= 7680- 4217.6= $ 3462.4
in week 2= 37*15*1.9*3= 3163.5, the net productivity is= 9009-3163.5= $5845.5
in week 3= 37*15*1.9*2= 2109, the net productivity= 5652-2109= $ 3543
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