The Weekly Output of a Fabrication Process Is Shown Below

question 41

Multiple Choice

The weekly output of a fabrication process is shown below together with data for labour and material inputs.Standard selling price is $125 per unit.Overhead is charged weekly at the rate of $1,500 plus .5 times direct labour cost.Assume a 40-hour week and an hourly wage of $16.Material cost is $10 per linear foot.What is the average multifactor productivity?

• A) 1.463
• B) 1.456
• C) 1.431
• D) 1.422
• E) None of the choices are correct.

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Definitions:

Business Cycles

The fluctuating levels of economic activity that an economy experiences over a period, marked by periods of expansion and contraction.

Contractions

Periods in the business cycle where there is a decline in economic activity, marked by reduced spending and increased unemployment.

Recession

A brief phase of economic downturn, signified by reduced commercial and industrial operations, often defined by a sequential fall in GDP over two quarters.

Expansionary Phase

A period within the business cycle where economic activity, including production, sales, and employment, is growing.