Nancy Kirkwood runs a small job shop where garments are made. The job shop employs 8 workers. Each worker is paid $10 per hour. During the first week of March, each worker worked 45 hours. Together, they produced a batch of 132 garments. Of these garments, 52 were "seconds" (meaning that they were flawed). The seconds were sold for $90 each at a factory outlet store. The remaining 80 garments were sold to retail outlets at a price of $198 per garment. What was the labor productivity, in dollars per labor-hour, at this job shop during the first week of March?

Question

Business

Carleen

10 April, 23:30

Nancy Kirkwood runs a small job shop where garments are made. The job shop employs 8 workers. Each worker is paid $10 per hour. During the first week of March, each worker worked 45 hours. Together, they produced a batch of 132 garments. Of these garments, 52 were "seconds" (meaning that they were flawed). The seconds were sold for $90 each at a factory outlet store. The remaining 80 garments were sold to retail outlets at a price of $198 per garment. What was the labor productivity, in dollars per labor-hour, at this job shop during the first week of March?

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Kathy Hansen · Answer 1

productivity per labor hours: 55.55 dollars

Explanation:

productivity per hour:

total output/total hours

total output:

52 second quality garment x $80 each = 4,160

80 first quality garment x $198 each = 15,840

total output 4,160 + 15,840 = 20,000

hours worked:

8 workers at 45 hours each = 360 hours

Productivity: 20,000/360 = 55.55

each labor hour produced $55.55 dollar per labor hours