Has labor productivity changed

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Reference no: EM133274595

Case: The output of a process is valued at $100 per unit. The cost of labor is $50 per hour including benefits. The accounting department provided the following information about the process for the past four weeks:

	Week 1	Week 2	Week 3	Week 4
Units produced	1,124	1,310	1,092	981
Labor ($)	12,735	14,842	10,603	9,526
Material ($)	21,041	24,523	20,442	18,364
Overhead ($)	8,992	10,480	8,736	7,848

A) Use the multifactor productivity ratio to see whether recent process improvements had any effect and, if so, when the effect was noticeable.

B) Has labor productivity changed? Use the labor productivity ratio to support your answer.

Reference no: EM133274595

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