Podcast
Questions and Answers
To calculate multifactor productivity, you need to consider all inputs, including labor, materials, and ______.
To calculate multifactor productivity, you need to consider all inputs, including labor, materials, and ______.
overhead
If a bank service unit processes 44 customers per day with 7 employees, and each employee earns $10 per hour, the labor productivity is calculated by dividing the number of customers processed by the number of ______ hours.
If a bank service unit processes 44 customers per day with 7 employees, and each employee earns $10 per hour, the labor productivity is calculated by dividing the number of customers processed by the number of ______ hours.
employee
The overhead rate, which is 1.1 times the labor cost, is added to the labor and material costs when calculating ______ productivity.
The overhead rate, which is 1.1 times the labor cost, is added to the labor and material costs when calculating ______ productivity.
multifactor
If a new procedure allows each employee to process one additional customer per day, you would expect the labor productivity to ______ for each unit.
If a new procedure allows each employee to process one additional customer per day, you would expect the labor productivity to ______ for each unit.
Comparing labor productivity across different bank units helps identify which unit is most efficient in utilizing its ______ resources.
Comparing labor productivity across different bank units helps identify which unit is most efficient in utilizing its ______ resources.
Flashcards
Labor Productivity
Labor Productivity
Output per unit of labor input; measures how efficiently labor is being used.
Multifactor Productivity
Multifactor Productivity
Output relative to a combination of inputs (labor, materials, overhead).
Calculating Labor Productivity
Calculating Labor Productivity
Customers processed per day divided by the number of employees.
Calculating Multifactor Productivity
Calculating Multifactor Productivity
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Impact of Standardized Procedures
Impact of Standardized Procedures
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Study Notes
- Bank service units process varying numbers of customers daily.
- Hourly wage rate: $10.
- Overhead rate: 1.1 times labor cost.
- Material cost: $5 per customer.
Unit A
- Employees: 4
- Customers Processed per Day: 39
Unit B
- Employees: 7
- Customers Processed per Day: 44
Unit C
- Employees: 5
- Customers Processed per Day: 61
Unit D
- Employees: 2
- Customers Processed per Day: 31
Productivity Analysis
- Labor productivity and multifactor productivity are calculated for each unit.
- Multifactor productivity calculations use an eight-hour day.
- Labor Productivity answers are rounded to 1 decimal place.
- Multifactor Productivity answers are rounded to 3 decimal places.
Proposed Procedure
- A new standardized procedure is expected to increase each employee's processing capacity by one customer per day.
- Expected labor and multifactor productivity rates are to be computed for each unit after the new procedure is implemented.
- Labor Productivity answers are rounded to 1 decimal place.
- Multifactor Productivity answers are rounded to 3 decimal places.
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Description
Evaluate labor and multifactor productivity in bank service units. Examines current productivity, cost factors, and the impact of a new standardized procedure. Analyze productivity changes after implementing the change.
