Question

Hokey​ Min's Kleen Karpet cleaned 85 rugs in​ October, consuming the following​ resources:Labor: 525 hours at $17 per hourSolvent: 120 gallons at $8 per hourMachine Rental: 20 days at $50 per hour​(a) Labor productivity per dollar​ = ____ ​rugs/dollar ​(round your response to four decimal​ places).(b) Multifactor productivity​ =_____rugs/dollar ​(round your response to four decimal​ places).

Answer 1

(a) The Labor productivity per dollar​ = 0.0095 ​rugs/dollar.

(b) The Multifactor productivity​ = 0.0078 rugs/dollar.

Step-by-step explanation:

Given information:

Number of rugs = 85

Labors: 525 hours at $17 per hour.

Total cost of labors = 525 × 17 = $8925

Solvent: 120 gallons at $8 per hour.

Total cost of solvent = 120 × 8 = $960

Machine Rental: 20 days at $50 per hour​.

Total rent = 20 × 50 = $1000

Total cost = Total cost of labors + Total cost of solvent + Total rent

Total cost = $8925 +$960 +$1000 =$10885

(a)

We need to find Labor productivity per dollar​.

`\text{Labor productivity}=\frac{outpu t}{\text{Labor cost}}`

`\text{Labor productivity}=(85)/(8925)`

`\text{Labor productivity}=0.0095238`

`\text{Labor productivity}\approx 0.0095`

Therefore the Labor productivity per dollar​ = 0.0095 ​rugs/dollar.

(b)

We need to find the Multifactor productivity.

`\text{Multifactor productivity}=\frac{Outp ut}{\text{Total cost}}`

`\text{Multifactor productivity}=(85)/(10885)`

`\text{Multifactor productivity}=0.0078089`

`\text{Multifactor productivity}\approx 0.0078`

Therefore the Multifactor productivity​ = 0.0078 rugs/dollar.