A wrapping paper company produced 20,000 rolls of paper one day. Standard price is $2 per roll. Labor cost was $240, material cost was $25, and overhead was $420. Determine the multifactor productivity

a. 29.197
b. 14.598
c. 58.394
d. None of the provided answers

Respuesta :

Based on the various costs of producing the rolls of paper, the multifactor productivity is c. 58.394.

What is the Multifactor Productivity?

This can be found by the formula:
= Cost of standard production / (Labor + Material + Overhead costs)

Solving gives:

= (20,000 x 2 per roll) / ( 240 + 25 + 420)

= 58.894 rolls

In conclusion, option C is correct.

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