Please answer the boxes The following table shows data on th

Please answer the boxes

The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $40, the overhead rate is 1.0 times labor cost, and material cost is $5 per customer. Customers Unit Employees Processed Da 38 46 60 20 a. Compute the labor productivity and the multifactor productivity for each unit. Use an eight-hour day for multifactor productivity. (Round your \"Labor Productivity\" answers to 1 decimal place and \"Multifactor Productivity\" answers to 3 decimal places.) Labor Productivity Multifactor Productivity (customers per day (customers per dollar Unit er worker) input 9.5 7.67 8.57 6.67

Solution

a. Labour Productivty is already provided in the Question. Lets Calculate multifactor productivity

MFP= Customers/ (cost of labour+ overhead code+material cost)

For A= 38/ (4 X 8 X 40 +4 X8 X 40+ 5 X 38)=0.014

For B it will be 0.011

For C, it is 0.013

and for D, it is 0.010

b. Now each employee can handle one more customer daily. Their labour productivity has increased by 1.

A=10.5, B=8.67, C=9.57, D=7.67

Total customers in A , B, C and D are 42,52, 67 and 23 respectively.

MFP will be as per the formula mentioned in first part

A=0.015, B=0.013, C=0.014 and D=0.011