Hokey? min's kleen karpet cleaned 65 rugs in? october, consuming the following? resources:

[Incomplete question. I found these data in other source]

Labor 520 hour at $13 per hour solvent: 100 gallons at $5 per gallon machine rental 20 days at $50 per day

a. what is the labor productivity per dollar?

b. what is the multi-factor productivity?

Answer:

a) You have to divide the dollars spent in labor with the number of rugs produced.

In order to calculate the dollars spent in labor, you have to multiply the number of hours worked with the price per hour.

labor expense = 520h*13$/h=$6760

labor productivity per dollar = 65rugs/$6760=0.00962rugs/$

b) You have to divide number of rugs produced with total expense.

In order to calculate the total expense, you have to add every expense.

The solvent expense can be calculated multiplying the number of gallons with the price per gallon:

solvent expense=100gallons*5$/gallon=$500

The machine rental expense can be calculated calculated multiplying the number of days with the price per day.

machine rental expense = 20days*50$/day=$1000

So here is the sum:

total expense=labor expense+solvent expense+machine expense

=$6760+$500+$1000=$8620

multi-factor productivity=65 rugs/8620$=0.00754rugs/$