Please show the Calculations Thanks The information below is

Please show the Calculations. Thanks

The information below is taken from the annual operation of a manufacturing business. Units produced: 255,000 $500/unit 400,000 hours $18.75/hour 1,000 ton:s $500/ton 1.25x labor cost Standard price: -Labor input: -Cost of labor: Material input: -Cost of materials -Cost of overhead: 1. What is the multi-factor productivity value of labor, material & overhead using output in Dollars? Explain what the numerical value means. 2. What is the multi-factor productivity value of labor, material & overhead using output in Units? Explain what the numerical value means. 3. What is the single factor productivity value for each input stated in dollars?

Solution

Total value of product = Units produced x Standard price / unit = 255,000 x 500 = $127500000

Total cost of labour = Labour input in hours x Cost of labour ( $/ hour ) = 400,000 x 18.75 = $7500000

Total cost of overhead = 1.25 x Cost of labour = 1.25 x 7500000 = $9375000

Total cost of Material = $500 / ton x 1000 tons = $500,000

Cumulative cost of all items =$7500000 + $9375000 + $500,000 = $17375000

Answer to question 1 :

Multifactor productivity using output in Dollars = Output in Dollars/ Cumulative cost of all items= 127500000/17375000 = 7.338

This means that for every $ spent as cumulative input , output worth of $7.333 is generated.

Answer to question 2 :

Multifactor productivity using output in units = Output in units/ Cumulative cost of all items = 255,000/ 17375000 = 0.0146

This means that for every $ spent as cumulative input , an output worth of 0.0146 units is generated

Answer to question 3 :

Single factor productivity for labour = Total value of product/ Total cost of labour = 127500000/7500000 = 17

Single factor productivity for overhead = Total value of product / Total cost of overhead = 127500000 / 9375000 = 13.6

Single factor productivity for material = Total value of product / Total cost of material = 127500000/ 500000 = 255