Question

Susan Williams runs a small Flagstaff job shop where garments are made. The job shop employs eight workers. Each worker is paid ​$8 per hour. During the first week of​ March, each worker worked 45 hours.​ Together, they produced a batch of 144 garments. Of these​ garments, 52 were​ 'seconds' (meaning that they were​ flawed). The seconds were sold for ​$100 each at a factory outlet store. The remaining 92 garments were sold to retail outlets at a price of ​$210 per garment. What was the labor​ productivity, in dollars per​ labor-hour, at this job shop during the first week of​ March? Labor productivity​ = nothing ​dollars/labor hour ​(round your response to two decimal​ places).

Answer 1

$68.11 per hour

Step-by-step explanation:

Labor productivity is measured as total output value per labor hour, or how much money (total units produced x unit price) is produced during each labor hour.

Flagstaff has 8 workers and each one has worked 45 hours during the first week of March = 8 x 45 = 360 total labor hours

total output during the first week of March was worth = (52 second garments x $100 per unit) + (92 flawless garments x $210 per unit) = $5,200 + $19,320 = $24,520

labor productivity = $24,520 / 360 hours = $68.11 per hour