INFORMATION:

The following table shows data on the average number of customers processed by the service units of three local banks

(A, B and C) each day. The hourly wage rate is R30, the overhead rate is 1.1 times labour cost, and material costs is R20

per customer.

Service Unit Number of

employees

Customers processed per day

Bank A

Bank B

Bank C

4

5

8

36

40

80

REQUIRED:

3.1 Compute the labour productivity and the multifactor productivity for each unit. Use an eight-hour day for multifactor

productivity (Round off multifactor productivity to three decimal places). (9 marks)

3.2 Suppose a new, more standardized procedure is to be introduced that will enable each employee to process one

additional customer per day. Compute the expected labour and multifactor productivity rate for each bank (Round off

multifactor productivity to three decimal places). (11 marks)