BANSIL,AARON T

A340

PRODUCTIVITY ASSIGNMENT

Compute the multifactor productivity measure for each of the weeks shown. Assume 40-hour weeks and
hourly wages of Php 50. Overhead is 1.2 times weekly labor cost. Material cost is Php 300 per pound.

Week Output (units) Workers Material (lbs)

1 40000 5 420

2 45000 6 490

3 50000 6 480

4 55000 6 500

Answer here--------

Wee Outpu Labor Cost Material Cost Overhead Total Cost Productivity
k t Cost
(4Ohrs.*Ph (300*MATERIAL (LC+MC+O (OUTPUT/TOT
p 50*#OF S) (LABOR C) AL COST)
WORKER COST*1.
S) 2)

1 40000 10000 126000 12000 148000 0.27

2 45000 12000 147000 14400 173400 0.26

3 50000 12000 144000 14400 170400 0.29

4 55000 12000 150000 14400 176400 0.31

1. How much is the increase or decrease in productivity from week 3 to 4?

_______________________+ 6.90%_____________

(CURRENT PRODUCTIVITY-PREVIOUS PROD.)/ PREVIOUS PROD x 100

((0.31-0.29)/0.29) x 100 = 6.8965%