# Model Answer of Tutorial 1 - Before 80 Ã 5 = 16 carts per...

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Model Answer of Tutorial 1 (Productivity) 1. Higher productivity this week. 2. (1) (2) (3) (4) (5) (6) (7) Worker Week Output [email protected] \$12x40 Overhead Cost @1.5 Material Total Cost MFP (2) ÷ (6) 1 30,000 2,880 4,320 2,700 9,900 3.03 2 33,600 3,360 5,040 2,820 11,220 2.99 3 32,200 3,360 5,040 2,760 11,160 2.89 4 35,400 3,840 5,760 2,880 12,480 2.84 Multifactor productivity dropped steadily from a high of 3.03 to about 2.84 3. a.
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Unformatted text preview: Before: 80 Ã· 5 = 16 carts per worker per hour. After: 84 Ã· 4 = 21 carts per worker per hour. b. Before: \$10 x 5 = \$50 + \$40 = \$90; hence 80 Ã· \$90 = .89 carts/\$1. After: \$10 x 4 = \$40 + \$50 = \$90; hence 84 Ã· \$90 = .93 carts/\$1. c. Labor productivity increased by 31% (5/16). Multifactor productivity increased by 4.5% (.04/.89)....
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