In a manufacturing process, five workers could produce 60 units per hour. labor costs are $15/hour, and material cost is $20/unit. overhead is charged at 1.5 times direct labor cost. finished units sell for $40 each. what is the multifactor productivity associated with the process?

1.729

Explanation:

Given;

Number of units produced by 5 workers = 60 per hour

Labor cost = $15/hour

Material cost = $20/unit

Overhead charged = 1.5 times direct direct labor cost

or

Overhead charged = $22.5/hour

Selling cost of the finished units = $40/unit

Now,

the total labor cost = Direct labor × Total number of labor = $15 × 5 = $75

Total material cost = Number of units × Material cost per unit

Total material cost = 60 × $20 = $1,200

Total overhead = 1.5 × the total labor cost  = 1.5 × $75 = $112.5

Therefore,

the total cost of production = $75 + $1,200 + $112.50 = $1,387.5

Total revenue = Number of units × Selling cost = 60 × $40 = $2,400

Thus,

the multifactor productivity =

or

the multifactor productivity =  

or

the multifactor productivity = 1.729

The correct answer would be, Brainstorming.

Explanation:

Dean used a technique, called Brainstorming.

Brainstorming is a process of generating new and innovative ideas by group discussion.

When a group of people discuss anything and generate ideas or give innovative solutions of the problem being discussed, they are actually resolving the problem and this process is called as brainstorming.

So in this question, when Dean went to his team to seek solution to the problem which he recently encountered, his team came up with surprisingly new innovative ideas that astonished Dean. So Dean actually used a technique called Brainstorming to make his team generate solution for the problem with their ideas and suggestions.