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1. The weekly output of a fabrication process is shown below together with data for labor and material costs. Overhead is charged weekly at the rate of 1.5 times direct labor cost. Assume a 40-hour week and an hourly wage of $16.
(1) What is the multifactor productivity for each of the three weeks?
(2) What is the growth rate (in percentage) of multifactor productivity from week 1
to week 2 and week 2 to week 3?
Week
Output
No. of workers
Material costs
1
30000
6
17000
2
34000
7
20000
3
38000
21000
Hint: Please read page 56-59 on productivity and Example 3 and Problems 1-4 (page 63- 64) of Chapter 2 in the textbook.
Please type your answer and the steps of computation in either Word or Excel file.
(Please DO NOT just write the answer. Show the steps that you solve the problems. Partial credit will be given based on your computation steps.)
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