Telco Inc. ,a manufacturing firm,is calculating its monthly productivity report.From the following data calculate the machine productivity. Labor rate $20
Machine rate $15
Units produced 50,000
Labor hours 4,000
Machine hours 2,000
Cost of materials $20,000
Cost of energy $5,000
A)0..370
B)0.625
C)1.500
D)1.667

Question

Quizplus · Accepted Answer

Machine productivity is calculated as units produced divided by machine hours. Here, it is 50,000 units / 2,000 machine hours = 25 units per machine hour. However, the choices seem to be in terms of cost productivity. Machine cost is $15 per hour, so total machine cost is 2,000 hours * $15 = $30,000. Productivity in terms of cost is 50,000 units / $30,000 = 1.667 units per dollar.

Telco Inc ,A Manufacturing Firm,is Calculating Its Monthly Productivity Report