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The following table shows data on the average number of customers processed by several bank

1. The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $25, the overhead rate is 1.0 times labour cost, and material cost is $5 per customer.

Unit Employees Customers processed

A 4 36

B 5 40

C 8 60

D 3 20

a. Compute the labour productivity and multifactor productivity for each unit

 

b. Suppose a new, more standard procedure is to be introduced that will enable each employee to process one additional customer per day. Compare the expected labour and multifactor productivity rates for each unit.For multifactor productivity assume an 8-hour day.

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