When an organization produces 100,000 units of output for 10 hours of direct labor,what is its labor productivity index?
A)1,000
B)10
C)10,000
D)100
E)1,000,000

Question

Quizplus · Accepted Answer

Labor productivity index is calculated by dividing the total output by the total hours of direct labor. 
Here, the organization produced 100,000 units of output for 10 hours of direct labor. 
So, the labor productivity index = Total output / Total direct labor hours 
= 100,000 / 10 
= 10,000. 
Therefore, the labor productivity index is 10,000. Option C is the correct answer.

When an Organization Produces 100,000 Units of Output for 10