Final answer:
The labor productivity of producing circular utility access hatches can be increased by 20%, resulting in a production rate of 14.4 covers per hour.
Step-by-step explanation:
If a foundry currently produces 120 circular utility access hatches in a 10-hour shift, this means their productivity is 12 covers per hour. If the labor productivity is increased by 20%, we calculate the new productivity by multiplying the current productivity by 1.20 (which represents a 100% current productivity plus a 20% increase). Hence, 12 covers per hour multiplied by 1.20 equals 14.4 covers per hour. Therefore, the correct answer is option a. 14.4 covers/hr.