ABC Company manufactures electrical assemblies. The current process uses 10 workers and produces 300 assemblies per hour. Production manager is considering changing the process with new assembly methods that increase output to 450 units per hour, but will require 14 workers. Information regarding ABC Company are given in the Table below,

	Current Process	New Process
Output (assemblies/hour)	300	450
Number of workers	10	14
Material cost/hour	$120	$150

Workers are paid at a rate of $10 per hour, and overhead is charged at 140% (or 1.4 times) labor costs. Finished products sell for $20 / unit. Using the above information

part 1. What is labor productivity (assembly units per labor-hour) of the current process?

a. about 3 assemblies per labor-hour

b. about 30 assemblies per labor-hour

c. about 100 assemblies per labor-hour

d. about 300 assemblies per labor-hour

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

a. about 21 assemblies per labor-hour

b. about 3 assemblies per labor-hour

c. about 32 assemblies per labor-hour

d. about 300 assemblies per labor-hour

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

a. less than or equal to 12.0

b. greater than 12.0 but less than or equal to 14.0

c. greater than 14.0 but less than or equal to 16.0

d. greater than 16.0

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

a. less than or equal to 16.0

b. greater than 16.0 but less than or equal to 19.0

c. greater than 19.0 but less than or equal to 22.0

d. greater than 22.0