7. The following table shows data on the average number of customers processed by several bank ser-

vice units each day. The hourly wage rate is $25, the overhead rate is 1.0 times labor cost, and mate-

rial cost is $5 per customer.

Unit

A

B

C

D

Employees

4

5

8

3

Customers

Processed/Day

36

40

60

20

a. Compute the labor productivity and the multifactor productivity for each unit. Use an eight-hour

day for multifactor productivity.

b. Suppose a new, more standardized procedure is to be introduced that will enable each employee

to process one additional customer per day. Compute the expected labor and multifactor produc-

tivity rates for each unit.