The Weekly Output of a Production Process Is Shown Below

question 49

Essay

The weekly output of a production process is shown below, together with data for labor and material inputs.The standard inventory value of the output is $125 per unit.Overhead is charged weekly at the rate of $1500 plus .5 times direct labor cost.Assume a 40-hour week and an hourly wage of $16.Material cost is $10 per running foot.What is the average multi-factor productivity for this process?

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Definitions:

Materials Price Variance

The difference between the actual cost and the standard cost of materials used in production, multiplied by the quantity of materials used.

Standard Price

A pre-determined cost assigned to goods and services, used as a benchmark in budgeting and variance analysis.

Pounds

A unit of weight commonly used in the British imperial and United States customary measurement systems.

Direct Materials Price Variance

The difference between the actual cost of direct materials used in production and the expected (or standard) cost of those materials.