a)

b)
labour 30 SP 300
materials 70
OH 50

Productivity 2 c) target productivity 2.2

target productivity 2.2
total costs 136.36363636
total costs 136.363636
material costs 56.3636364 OH 36.363636364

% 19.48% % 27.27%

target productivity 2.2

total costs 136.363636

labpur costs 16.3636364

% 45.45%
The BBBC Company has a large order of military uniforms. Working the normal two shifts of 40 hours each per week
BBBC production process usually produces 2500 uniforms per week at a standard cost of 120 USD each. 70 employe
the I shift and 30 employees - II shift. The contract price is 200 USD/uniform. Because of urgent need, BBBC authoriz
work six days, 72 hours per each shift. Production level now is 4000 unit/week and cost of 144 USD each.

a)Did the multifactor productivity ratio increase, decrease or remain the same? If it changed, by what percentage di
change?
b)Did the labor productivity ratio increase, decrease or remain the same? If it changed, by what percentage did it ch
c)Did weekly profits increase, decrease or remain the same?
 hours 40 72 shift 1
production 2500 4000 shift 2
cost 120 144

SP 200

a) P1 1.666666667
P2 1.388888889

productivity decreased by 16.67%

b) P1 125
P2 111.1111111

productivity decreased by 11.11%

c) profit 1 200000
profit 2 224000

weekly profit increased by 12.00%

70
30
 The output of a process is valued at 100$ per unit. The cost of
following information about the process for the past four wee

Week 1 Week 2
Units produced 1124 1310
Labor ($) 12735 14842
Material ($) 21041 24523
Overhead ($) 8992 10480

a)Use the multifactor productivity ratio to see whether recent proces

b)Has labor productivity changed? Use the labor productivity ratio to

a) Week 1 Week 2
Productivity 2.628133183689 2.6281472565

effect was noticeable in the 3rd week

b) Week 1 Week 2
Labor productivity 4.41303494307 4.4131518663

labor prouctivity changed in the 3rd week

r unit. The cost of labor is 50$ per hour including benefits. The accounting de
the past four week:

Week 3 Week 4
1092 981
10603 9526
20442 18364
8736 7848

er recent process improvements had any effect and, if so, when the effect w

ductivity ratio to support your answer.

Week 3 Week 4
2.745029034 2.744977335

in the 3rd week

Week 3 Week 4
5.1494859945 5.1490657149 unit/labor hours

ged in the 3rd week

e accounting department provided the

hen the effect was noticeable;