A process produces 2,500 units of output that sell for $10 per unit. Resources contributed to this output are 100 hours of labor at $20 per hour, materials at $300, and overhead at $700. What is the labor productivity?
A) 20 units per hour
B) 25 units per hour
C) 40 units per hour
D) 30 units per hour

Question

Quizplus · Accepted Answer

Labor productivity is calculated by dividing the total units produced by the total labor hours. In this case, total units produced are 2,500 and total labor hours are 100. So, labor productivity is:
2,500 units / 100 hours = 25 units per hour
Therefore, the correct answer is B.

A Process Produces 2,500 Units of Output That Sell for $10