Premier Products Co. has provided the following information for last year:
$$\begin{array} { l r r }
\text { Material costs } & \$ 150,000 \
\text { Labor hours } & \$ 45,000 \
\text { Overhead costs } & \$ 117,000 \
\text { Product produced } & 8,000 & \text { @ selling price of \$45/each }
\end{array}$$
The total factor productivity measure is:
A) $150,000.
B) $312,000.
C) 1.154.
D) 0.832.

Question

Premier Products Co. has provided the following information for last year:
$$\begin{array} { l r r } 
\text { Material costs } & \$ 150,000 \
\text { Labor hours } & \$ 45,000 \
\text { Overhead costs } & \$ 117,000 \
\text { Product produced } & 8,000 & \text { @ selling price of \$45/each }
\end{array}$$
The total factor productivity measure is:
A) $150,000.
B) $312,000.
C) 1.154.
D) 0.832.

Quizplus · Accepted Answer

Total factor productivity = (Output / (Labor + Capital + Material))= (8,000 * $45) / ($45,000 + $117,000 + $150,000)= $360,000 / $312,000= 1.154

Premier Products Co The Total Factor Productivity Measure Is: A) $150,000

Premier Products Co The Total Factor Productivity Measure Is:
A) $150,000