Question

Barry's Tire Service completed 100 tire changes, six brake jobs, and 16 alignments in an eight-hour day with his standard crew of six mechanics. A brake specialist costs $16 per hour, a tire changer costs $8 per hour, and an alignment mechanic costs $14 per hour. The materials cost for a day was $2000, and overhead cost was $500. What is the shop's labor productivity if the retail price for each respective service is $60, $150, and $40

Answer 1

Answer:

Labor productivity is 157.083 per hours

Explanation:

Number of tires changed = 100 tire

Number of brake jobs = 6

Alignment job = 16  

Number of standard crew = 6 machines

The cost of break specialist = $16 per hour

Cost to change tire = $8

Alignment costs = $14 per hour.

Given the cost of material = $2000

Overhead cost = $500

Now we have to find labor productivity hours.

Labor productivity = Output / Labor hours

Labor productivity = (100)(60) + (6)(150)+(16)(40) / (6)(8)

Labor productivity = (6000 + 900 + 640) / 48

Labor productivity = 157.083 per hours