The weekly output of a production process is 2000 units using 5 workers and 1500 feet of materials. The standard inventory value of production is $135 per unit. Overhead is charged weekly at a rate of $1,500 plus 0.5 times the direct labor cost. Let's assume a 40-hour week and an hourly wage of $16. The cost of the material is $10 per running foot. Determine multifactor productivity.

Problem 3 -

An operation produces 190 units per hour with a scrap rate of 10 percent. If we could eliminate scrap completely, what would be the percentage increase in productivity per hour?

Answer rating: 100% (QA)

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