The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $25, the overhead rate is 1.0 times labor cost, and material cost is $5 per customer.

Unit Employees



A 4 36

B 5 40

C 8 60

D 3 20

a. Compute the labor productivity and the multifactor productivity for each unit. Use an eight-hour

day for multifactor productivity.

b. Suppose a new, more standardized procedure is to be introduced that will enable each employee

to process one additional customer per day. Compute the expected labor and multifactor productivity rates for each unit.