Productivity = Output/Input
Week 1
Output = No.of units * Selling Price = 392*125 = 49000
Input = Overhead cost +Direct labour cost+ material Cost= 1500+0.5*Labour cost+ Direct labour cost + Per feet cost*feet
=1500+40*5*16*0.5+40*5*16 +2720*10 = 33500
Productivity week 1 = 49000/33500= 1.46
Week 2
Output = No.of units * Selling Price = 408*125 = 51000
Input = Overhead cost +Direct labour cost+ material Cost= 1500+0.5*Labour cost+ Direct labour cost + Per feet cost*feet
=1500+40*6*16*0.5+40*6*16 +2790*10 = 35160
Productivity week 2 = 51000/35160= 1.45
(b) Rate of change of productivity= ( Productivity week 2 – Productivity week 1) /(Productivity week 1) = (1.45-1.46)/1.46 = -0.68% (Negative sign denotes decrease)
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