Year 2006 Year 2007 Production (units) 4500 6000 Raw Material used (barrels o

Year 2006 Year 2007
Production (units)
4500
6000
Raw Material used (barrels of petroleum by-products)
700
900
Labor hours
22000
28000
Capital cost applied to the department ($)
$375000
$620000Bob knew that his labor cost per hour had increased from an average of $13 per hour to $14 per hour primarily due to a move by management to become more competitive with a new company that had just opened a plant in the area. He also knew that his average cost per barrel of raw material had increased from $320 to $360. He was concerned about the accounting procedures that increased his capital cost from $375000 to $620000 but earlier discussions with his boss suggested that there was nothing that could be done about that allocation.
Bob wondered if his productivity had increased at all. He called Sharon into the office and conveyed the above information to her and ask her to prepare this part of the report (i.e. compute multifactor productivity).
Work out this case and submit your solution as an Excel file. You should create one file with two Tabs (one tab for the calculation for Single Factor Productivity and the second tab for the calculation for Multifactor Productivity)