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6 March, 02:54

A process produces 5000 units of output that yield $6 per unit. Resources contributed to this output are 200 hours of labor at $15 per hour, materials at $700 and overhead at $300. What is the labor productivity? (assuming that the output is measured by its unit)

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  1. 6 March, 03:14
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    Labor productivity = 25 units per hour

    Explanation:

    The labor productivity per hour is the number of output units, per unit of labor input.

    Number of units produced = 5,000 units

    Number of hours of labor input = 200 hours

    ∴ Labor productivity = units produced : labor input in hours

    Labor productivity = 5,000 : 200 = 25

    ∴ Labor productivity = 25 units per hour
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