Question

A process produces 5000 units of output that yield $6 per unit. Resources contributed to this output are 200 hours of labor at $15 per hour, materials at $700 and overhead at $300. What is the labor productivity? (assuming that the output is measured by its unit)

Answer 1

Labor productivity = 25 units per hour

Step-by-step explanation:

The labor productivity per hour is the number of output units , per unit of labor input.

Number of units produced = 5,000 units

Number of hours of labor input = 200 hours

∴ Labor productivity = units produced ÷ labor input in hours

Labor productivity = 5,000 ÷ 200 = 25

∴ Labor productivity = 25 units per hour