Question

Weekly sales at nancy's restaurant total $ 84,000. labor required is 420 hours at a cost of $21,000. raw materials used amount to $40,000. what is the partial measure of productivity for labor hours?

Answer 1

Answer: $200 per hour

Explanation: Partial productivity is simply defined as the ratio of output to one particular type of input. Input could be labor, material or capital.

Partial productivity varies depending on the type of input required to calculate the productivity and could hence take the form of labor, material or capital productivity.

Labor productivity = output ÷ labor input

Labor productivity = $84,000 ÷ 420 hours = $200 per hour

Partial measure of productivity for labor hours = $200 per hour