[email protected] Considering the number of pieces processed per hour as its output, Me
ifield Post Office is evaluating the
productivity of its mail processing centers. The centers differ in the degree of automation, the type of work that can be
performed, and the skill of the workers.
Center 1 2 3
Pieces processed per hour 1,000 2,000 3,000
Number of workers per hour 10 5 2
Hourly wage rate $5.50 $10.00 $12.00
Overhead rate per hour $10.00 $25.00 $50.00
a) Calculate the multifactor productivity for each center.
Multifactor productivity for each center is as shown below with formulas for easy understanding
Center 1 2 3 1 with New Machine
Pieces Processed per Hr (a) 1000 2000 3000 1500
No of workers/Hr (b) 10 5 2 10
Hourly wage rate (c ) $ ...