Toomey Toolworks Co.has provided the following information for last year:
$$\begin{array} { | l | r | l | }
\hline \text { Tons of metal input } & 20,000 & @ \$ 15 \text { ton } \
\hline \text { Labor hours } & 15,000 & @ \$ 30 \text { hour } \
\hline \text { Overhead costs } & \$ 225,000 & \
\hline \begin{array} { l }
\text { Tons of forging } \
\text { produced }
\end{array} & 16,000 & \begin{array} { l }
@ \text { selling price of } \
\$ 75 \text { ton }
\end{array} \
\hline
\end{array}$$The total factor productivity measure is:
A) 1.231.
B) 1.600.
C) 2.167.
D) 3.250.

Question

Toomey Toolworks Co.has provided the following information for last year: 
$$\begin{array} { | l | r | l | } 
\hline \text { Tons of metal input } & 20,000 & @ \$ 15 \text { ton } \
\hline \text { Labor hours } & 15,000 & @ \$ 30 \text { hour } \
\hline \text { Overhead costs } & \$ 225,000 & \
\hline \begin{array} { l } 
\text { Tons of forging } \
\text { produced }
\end{array} & 16,000 & \begin{array} { l } 
@ \text { selling price of } \
\$ 75 \text { ton }
\end{array} \
\hline
\end{array}$$The total factor productivity measure is:
A) 1.231.
B) 1.600.
C) 2.167.
D) 3.250.

Quizplus · Accepted Answer

Total factor productivity is calculated as the ratio of total output to total input costs. The output value is 16,000 tons at $75 per ton, totaling $1,200,000. The input costs are $300,000 for metal, $450,000 for labor, and $225,000 for overhead, totaling $975,000. The productivity measure is $1,200,000 / $975,000 = 1.231.

Toomey Toolworks Co The Total Factor Productivity Measure Is: A) 1

Toomey Toolworks Co The Total Factor Productivity Measure Is:
A) 1