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Bob Lee, a division manager for JTCL Ltd has been given a mandate to control costs. Bob’s division is called the Murray Division. After taking an Operations Management class he remembered that a good place to start would be to get a current measure of his division's productivity. The Murray Division is comprised of 5 employees who are paid $10 hourly and work 40 hours per week. The division used 75 pounds of material during the week he is studying. Each week JTCL Ltd assigns an overhead charge of $1,000 to the Murray Division. Material costs $10 per pound. The division completed 9000 units of product last week. Which of the following best describes last week’s labor productivity at the Murray Division?
a. 45 units per labor hour
b. 4.5 units per labor hour
c. 3.75 units per labor hour
d. 45 units per labor hour
e. 37.5 units per labor hour

Respuesta :

Answer:

a. 45 units per labor hour.

Explanation:

No. of units produced is 9000 units

No. of labor hours per week is 40 hours

There are total 5 labors so the hours per labor is 40/ 5 = 8 hours per labor.

No. of units produced by each labor is 9000 / 5 = 1800 units per labor

The unit per labor hour is 1800 / 8 hours = 225 units

These units are further distributed among 5 workers so each labor has produced 225 / 5 = 45 units per week.

The  last week’s labor productivity at the Murray Division is option a. 45 units per labor hour.

Calculation of last week’s labor productivity:

Since the No. of units produced is 9000 units and the No. of labor hours per week is 40 hours and there are total 5 laborers

so the hours per labor should be = 40/ 5 = 8 hours per labor.

Now

No. of units produced by each labor should be

= 9000 / 5

= 1800 units per labor

Now

The unit per labor hour is

= 1800 / 8 hours

= 225 units

Since there are 5 workers so per worker it should be

= 225 / 5

= 45 units per week.

Learn more about productivity here: https://brainly.com/question/13302671

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