How to compute the expected labor, Operation Management

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The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $30, overhead rate is 1.0 times labor cost, and material cost is $7 per customer.

Units Employees Customers Processed

A 3 28

B 6 44

C 7 62

D 2 22

a.Compute the labor productivity and the multifactor productivity for each unit. Use an 8 hour day for multifactor productivity. And if a new procedure is introduced that allows employees to process one additional customer per day, compute the expected labor and multifactor productivity rates for each unit.

b. Suppose a new, more standardized procedure is to be introduced that will enable each employee to process one additional customer per day. Compute the expected labor and multifactor productivity rates for each unit


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