Tungsten Forging Co. has provided the following information for last year:
$$\begin{array} { l r l }
\text { Tons of metal input } & 10,000 & @ \$ 10 / \text { ton } \
\text { Labor hours } & 5,000 & @ \$ 30 \text { hour } \
\text { Overhead costs } & \$ 125,000 & \
\text { Tons of forging produced } & 8,000 & @ \text { selling price of } \$ 60 / \text { tor }
\end{array}$$
The total factor productivity measure is:
A) $480,000.
B) $375,000.
C) 1.28.
D) 0.78.

Question

Tungsten Forging Co. has provided the following information for last year:
$$\begin{array} { l r l } 
\text { Tons of metal input } & 10,000 & @ \$ 10 / \text { ton } \
\text { Labor hours } & 5,000 & @ \$ 30 \text { hour } \
\text { Overhead costs } & \$ 125,000 & \
\text { Tons of forging produced } & 8,000 & @ \text { selling price of } \$ 60 / \text { tor }
\end{array}$$
The total factor productivity measure is:
A) $480,000.
B) $375,000.
C) 1.28.
D) 0.78.

Quizplus · Accepted Answer

Total factor productivity = (Output / (Input1 + Input2 + ... + Inputn))= (8,000 * $60) / (10,000 * $10 + 5,000 * $30 + $125,000)= $480,000 / $375,000= 1.28

Tungsten Forging Co The Total Factor Productivity Measure Is: A) $480,000

Tungsten Forging Co The Total Factor Productivity Measure Is:
A) $480,000