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.
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.