The Weekly Output of a Production Process Is Shown Below

question 57

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 $1,500 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 multifactor productivity for this process? $$\begin{array} { l c c c } \text { Week } & \text { Output } & \text { \# Workers } & \text { Material (ft) } \\\hline 1 & 412 & 6 & 2840 \\2 & 364 & 5 & 2550 \\3 & 392 & 5 & 2720 \\4 & 408 & 6 & 2790\end{array}$$

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Definitions:

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