A company manufactures electrical assemblies. The current process uses 10 workers and produces 200 assemblies per hour. Production manager is considering changing the process with new assembly methods that increase output to 350units per hour, but will require 14 workers. Information regarding the company are given in the Table below,

Current Process New Process

Output (assemblies/hour) 200 350

Number of workers 10 14

Material cost/hour $120 $150

Workers are paid at a rate of $15per hour, and overhead is charged at 140% (or 1.4times) labor costs. Finished products sell for $20/unit.Using the above information

2.What is labor productivity (assembly units per labor-hour) of the new process?

a. about 25 assemblies per labor-hour

b. about 3 assemblies per labor-hour

c.about 32 assemblies per labor-hourd. about 300 assemblies per labor-hour

3.What is multifactor productivity (labor + material + overhead) of the current process?

a.less than or equal to 8.0

b. greater than 8.0 but less than or equal to 10.0

c.greater than 10.0 but less than or equal to 12.0

d. greater than 12.0

4. What is multifactor productivity (labor + material + overhead) of the new process?

a. less than or equal to 8.0

b. greater than 8.0 but less than or equal to 10.0

c. greater than 10.0 but less than or equal to 12.0

d. greater than 12.0