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Question: problem 7 the following table shows data on the average...

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Problem 7

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

Unit

Employees

Customers Processed/Day

A

4

36

B

5

40

C

8

60

D

3

20

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

  2. 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.

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