Question

Snacknow, a food service firm, is calculating its monthly productivity report. From the following raw data calculate the labor productivity.

Labor rate $10
Units produced 10,000
Labor hours 1,000
Cost of materials $2000
Cost of energy $500

(A) 0.220
(B) 1.000
(C) 0.800
(D) 0.476

Answer 1

Step-by-step explanation:

Labor productivity = Total output/ Total Input

Labor rate = $10. Labor hours = 1,000

So total labour input = 1,000*10= 10,000.

Materials and energy cost input = 2000+500

⇒ total input = 10,000+ 2000+500= 12500

Total output (units produced) = 10,000

Labor productivity= 10,000/12500= 0.80