QUESTION $3(20$ Marks$)$

Study the information provided below and answer the following questions.

INFORMATION

Paulshron Enterprises $($PE$)$ makes three different types of high$-$end air conditioners: the ceiling type $($A$1$X$),$ the cassette

type $($A$2$X$),$ and the wall$-$mounted type $($A$3$X$).$ The data provided below relates to the three types of the air conditioners for

the current year:

$($A$1$X$)($A$2$X$)($A$3$X$)$

Annual production and sales $($units$)450375500$

Selling price per unit, R $360004500050000$

Direct labour per unit, minutes $18012090$

Direct material cost per unit, R $800065508400$

Actual overhead cost per unit, R $710053004400$

Total direct labour cost is R$3000$ per hour.

REQUIRED:

$3\mathrm{.}1.$ Calculate labour productivity $($in Rands per labour hour$)$ for each type of air conditioner $($round off

answers to the nearest Rand, where necessary$).$

$(6$ marks$)$

$3\mathrm{.}2.$ Calculate the current multifactor productivity of Paulshron Enterprises $($show all calculations and round

off answer to two decimal places$).$

$(8$ marks$)$

$3\mathrm{.}3.$ Paulshron Enterprises plans to increase the selling price of each of the three types of air conditioners

by $5\%,$ and the total direct labour cost is projected to increase to R$3200$ per hour next year. Calculate the

expected multifactor productivity of Paulshron Enterprises next year $($Show all calculations and round off

the answer to two decimal places$).$

$(6$ marks$)$