Question: A company manufactures electrical assemblies. The current process uses 10 workers and produces 200 assemblies per hour. Production manager is considering changing the current process
A company manufactures electrical assemblies. The current process uses 10 workers and produces 200 assemblies per hour. Production manager is considering changing the current process with the new assembly process that increases output to 350 units per hour, but will require 14 workers. Information regarding the company are given in the Table below, Workers are paid at a rate of $15 per hour, and overhead is charged at 140% (or 1.4 times) labor costs. Finished products sell for $20/ unit. Using the above information 2. What is labor productivity (assemblies per labor-hour) of the new process? a. about 32 assemblies per labor-hour b. about 3 assemblies per labor-hour c. about 25 assemblies per labor-hour d. about 350 assemblies per labor-hour
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