Sojourn Enterprises has provided the following information for last year:
$$\begin{array} { l r r }
\text { Material costs } & \$ 225,000 \
\text { Labor hours } & \$ 85,000 & \
\text { Overhead costs } & \$ 311,000 \
\text { Product produced } & 32,000 & \text { @ selling price of \$22/each }
\end{array}$$
The total factor productivity measure is:
A) 1.003.
B) 1.134.
C) 0.882.
D) 0.362.

Question

Sojourn Enterprises has provided the following information for last year:
$$\begin{array} { l r r } 
\text { Material costs } & \$ 225,000 \
\text { Labor hours } & \$ 85,000 & \
\text { Overhead costs } & \$ 311,000 \
\text { Product produced } & 32,000 & \text { @ selling price of \$22/each }
\end{array}$$
The total factor productivity measure is:
A) 1.003.
B) 1.134.
C) 0.882.
D) 0.362.

Quizplus · Accepted Answer

Total factor productivity = (Output / (Labor + Capital + Material))= (32,000 * 22) / (85,000 + 311,000 + 225,000)= 704,000 / 621,000= 1.134

Sojourn Enterprises Has Provided the Following Information for Last Year