Susan Williams runs a small Flagstaff job shop where garments are made. The job shop employs eight workers. Each worker is paid $1010 per hour. During the first week of March, each worker worked 4040 hours. Together, they produced a batch of 156156 garments. Of these garments, 5454 were 'seconds' (meaning that they were flawed). The seconds were sold for $100100 each at a factory outlet store. The remaining 102102 garments were sold to retail outlets at a price of $200200 per garment. What was the labor productivity, in dollars per labor-hour, at this job shop during the first week of March? Labor productivity = nothing dollars/labor hour (round your respons

The labor productivity is $80.63 per labor hour

Explanation:

Number of workers = 8

Worker payment = $10 per hour

Working hours in first week of march = 40 hours

Number of production of garments (Firsts) = 156 garments

Number of production of garments (seconds) = 54 garments

Remaining production = Firsts - seconds

= 156 - 54 = 102 garments

Price of seconds = $100

Price of remaining production = $200

Labor productivity = [(Number of seconds × price of seconds) + (Number of remaining × price of remaining)] ÷ (Number of laborers × hours per week)

= [(54 × 100) + (102 × 200)] ÷ (8 × 40)

= [ 5400 + 20,400] ÷ 320

= 25,800 ÷ 320

= $80.63

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