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Using the Information Below, Determine the Productivity (Measured as Output

Question 95

Essay

Using the information below, determine the productivity (measured as output per dollar input) for each quarter and calculate the percentage change in productivity.  First Quarter  Second Quarter  Total Units Sold 12,00011,500 Labor Hours 10,0009,500 Labor Cost/Hour $8.00$8.00 Material Usage (lbs.) 6,0005,500 Material Cost/lb. $12.00$11.50 Other Costs $25,000$23,000\begin{array}{|l|l|l|}\hline & \text { First Quarter } & \text { Second Quarter } \\\hline \text { Total Units Sold } & 12,000 & 11,500 \\\hline & & \\\hline \text { Labor Hours } & 10,000 & 9,500 \\\hline \text { Labor Cost/Hour } & \$ 8.00 & \$ 8.00 \\\hline & & \\\hline \text { Material Usage (lbs.) } & 6,000 & 5,500 \\\hline \text { Material Cost/lb. } & \$ 12.00 & \$ 11.50 \\\hline & & \\\hline \text { Other Costs } & \$ 25,000 & \$ 23,000\\\hline\end{array}

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For the first quarter: total labor cost ...

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