Wonder-Tire Service completed 200 tire changes, 10 brake jobs, and 24 alignments in an 10- hour day with a crew of eight specialists. A brake specialist costs $14 per hour, a tire changer costs $6 per hour, and an alignment mechanic costs $16 per hour. The materials cost for a day was $2200, and overhead cost was $600. a. What is the shop’s labor productivity if the retail price for each respective service is $70, $160, and $60? b. What is the multifactor productivity, if the crew consisted of two tire changers, 3 brake specialists and 2 alignment mechanics ?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Wonder-Tire Service completed 200 tire changes, 10 brake jobs, and 24 alignments in an 10-
hour day with a crew of eight specialists. A brake specialist costs $14 per hour, a tire changer
costs $6 per hour, and an alignment mechanic costs $16 per hour. The materials cost for a day
was $2200, and overhead cost was $600.
a. What is the shop’s labor productivity if the retail price for each respective service is $70,
$160, and $60?
b. What is the multifactor productivity, if the crew consisted of two tire changers, 3 brake
specialists and 2 alignment mechanics ?

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