Question

1. Based on the following data, calculate the single-factor productivity ratio using hours of labor for a housekeeping department. • Number of employees = 100 • Average hourly rate = $5.50 • Total hours worked in September = 15,570 • Total square feet maintained = 190,000

I am having a hard time understanding how the book came up with these answers. need it worked out so I understand the process

The single-factor productivity rate is 12.2 (190,000 square feet ÷ 15,570 hours worked).

Answer 1

Productivity = Output / Input

Here, Output = total square feet maintained = 190,000
And, Input = total hours worked = 15,570

So, productivity will be 190,000 / 15,570 = 12.2 square feet maintained per hour

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One could have also used the input using the $ unit. In that case, the input will be

Input = total hours worked x per hour rate = 15,570 x $5.50 = $85,635

Productivity = Output / Input = 190,000 / 85,635 = 2.22 square feet maintained per $