Broha Company manufactured 1,500 units of its only product during 2019. The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2018 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
Round all calculations to 2 significant digits.
Required:
1. The total productivity ratio in 2018 is ____________.

Respuesta :

Answer:

Productivity ratio is 21%

Explanation:

Productivity ratio measures the level of output achieved using a certain amount of resources. It is computed as the value of output to input.

Productivity ratio = output/input × 100

Input in cost :

Material cost

Material A = 500 × $1.2 =600

Material B = 360 × $2.50=900

Labour = 400 × $18=7200

Total cost = 600+900+7200= $8,700

Output- 1800 units

Productivity ratio in 2018 = 1800/8700  × 100

                                           = 21%