"ompute the multi factor productivity measure for each of the weeks of production of chocolate bars. Which week has the least productivity? Assume 40-hour weeks and an hourly wage of $12. Overhead is 1.5 times weekly labor cost. Material cost is $6 per pound. Week Output (units) Workers Materials (lbs) 1 25000 7 460 2 30000 6 480 3 33000 6 490 4 36000 9 480"

Explanation:

                output    worker  Mat    LC     OH       MC     TC     MFP

Week 1     25,000       7        460  3360   5040 2760  11160  2.24

Week 2    30000        6        480   2880  4320 2880  10080 2.98

Week 3    33,000        6        490   2880  4320 2940 10,140  3.25

Week 4    36,000        9        480   4320   6480  2880 13,680 2.63

Week 3 has the least productivity

Calculation

Labor cost                                    Total Cost

Week 1 =40*12*7=3360        3360+5040+2760 = 11,160

Week 2 - 40*12*6 - 2880     2,880+4,320 +2880= 10,080

Week 3 = 40*12*6 = 2,880   2,880+4,320+2,940 =10,140

Week 4 = 40*12*9 =4,320     4,320+6,480+2,880 =13,680

Overhead                                   Multifactor productivity

Week 1 = 3360*1.5 =5,040     25,000/11160 = 2.24

Week 2 = 2880*1.5 = 4,320   30,000/10,080= 2.98

Week 3 = 2880*1.5 = 4,320    33,000/10140 =3.25

Week 4= 4320*1.5 =6,480       36,000/13,680 =2.63

   Material cost

Week 1 = 460*6 = 2,760

Week 2 = 480*6 = 2,880

Week 3 = 490*6= 2,940

week 4 = 480*6 = 2,880

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