If 20,000 hours of labor were used in the expenditure base, $1,000,000 was paid in salary to produce 5,000 outputs, and wages are expected to increase by 5%, the productivity standard would be:
A) 4.0 hours per output.
B) $200 per output.
C) 4.2 hours per output.
D) $210 per output.

Question

Quizplus · Accepted Answer

The productivity standard is calculated by dividing the total hours of labor by the number of outputs. 20,000 hours / 5,000 outputs = 4.0 hours per output.

If 20,000 Hours of Labor Were Used in the Expenditure