(Solved Homework): Compute the multifactor productivity measure for each of the three weeks (your candy bar production…

Compute the multifactor productivity measure for each of the three weeks (your candy bar production data is in the table below). Enter the highest value for the three weeks (i.e., if Week 3 had the highest productivity, enter its productivity value as your answer).

Week Candy Bars Workers Chocolate (lbs)
1 29700 6 437
2 32300 7 456
3 34975 8 488

Workers have 39.8 hours per week and are paid $15.3 per hour.

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Overhead is 1.5 times the labor cost.

Chocolate was purchased for $4.80 per pound.

(Keep 2 decimal places in your answer)

Expert Answer


Multifactor Productivity = Output / Input

Output is Number of Candy bars and Input is Total cost

Total cost = Labor cost + Overhead cost + Material cost

Labor cost = Number of workers * 39.8 hours per week * $ 15.3 per hour

Overhead cost = 1.5 * Labor cost

Material cost = Chociolate (lbs) * $ 4.8 per pound

Highest productivity is 2.64 in week 1.

ANSWER: 2.64

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