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26 December, 05:16

Snacknow, a food service firm, is calculating its monthly productivity report. From the following raw data calculate the labor productivity.

Labor rate $10

Units produced 10,000

Labor hours 1,000

Cost of materials $2000

Cost of energy $500

(A) 0.220

(B) 1.000

(C) 0.800

(D) 0.476

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  1. 26 December, 05:32
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    Labor productivity = Total output / Total Input

    Labor rate = $10. Labor hours = 1,000

    So total labour input = 1,000*10 = 10,000.

    Materials and energy cost input = 2000+500

    ⇒ total input = 10,000 + 2000+500 = 12500

    Total output (units produced) = 10,000

    Labor productivity = 10,000/12500 = 0.80
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