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Susan williams runs a small flagstaff job shop where garments are made. the job shop employs eight workers. each worker is paid ​$1212 per hour. during the first week of​ march, each worker worked 4545 hours.​ together, they produced a batch of 132132 garments. of these​ garments, 5454 were​ 'seconds' (meaning that they were​ flawed). the seconds were sold for ​$100100 each at a factory outlet store. the remaining 7878 garments were sold to retail outlets at a price of ​$210210 per garment. what was the labor​ productivity, in dollars per​ labor-hour, at this job shop during the first week of​ march? labor productivity​ = 21 nothing ​dollars/labor hour ​(round your response to two decimal​ places).

User MilanG
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Final answer:

Labor productivity for Susan Williams's job shop is calculated by dividing the total revenue from sales of garments by the total labor hours, resulting in a productivity rate of $60.50 per labor hour for the first week of March.

Step-by-step explanation:

Labor productivity is considered in terms of the dollar value each worker adds per hour to the employer's output. To determine the labor productivity for Susan Williams's job shop, we first calculate the total revenue from the sale of garments. The 54 'seconds' sold at $100 each results in $5,400, and the remaining 78 garments sold at $210 each brings in $16,380. The sum is $21,780 in total revenue.

The shop employed eight workers, each working 45 hours, summing up to a total of 360 labor hours for the first week of March (8 workers x 45 hours). To find the productivity, we divide the total revenue by the total labor hours: $21,780 / 360 hours = $60.50 per labor hour. Thus, the productivity rate is $60.50 per labor hour.

User Karusmeister
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Labour Productivity is basically the worth of goods produced by each labour or collectively in an hour, This can be expressed in the formula below:

Labour Productivity per hour of work=
(Worth of Goods Produced)/(Total Number of Labour Hours)

In order to find worth of goods we shall use below Formula:

Worth of Goods= Sale Price per Unit*Number of Units Sold

In given case there are 2 types of goods sold as below

1. Proper Garments

Worth of Goods Sold= $210*78 Garments

Worth of Goods Sold=$16380

2. Seconds

Worth of Goods Sold= $100*54

Worth of Goods Sold= $5400

Total Goods Sold= $5400+$16380

Total Worth of Goods=$21780

Total Hours Worked= No of Workers*Hours Worked each Worker

Total Hours Worked= 8*45

Total Hours Worked=360 Hours

Labour Productivity=
\\ (21780)/(360)

Labour Productivity=$60.5 per Hour


User Mbostock
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