Question: QUESTION 1 - PRODUCTIVITY (15 Marks) The following table shows data on the average number of customers processed by several bank service units each day.

QUESTION 1 - PRODUCTIVITY (15 Marks)

The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $25, the overhead rate is 1.2 times labor cost, and material cost is $5 per customer.

Unit

Employee

Customers Processed/Day

A

4

36

B

5

40

8

60

D

3

20

  1. Compute multifactor productivity for each unit. Use an 8-hour day for multifactor productivity. (10 marks)

  1. If the productivity for Unit A increases by 20%, what is the new productivity? (5 marks)

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