By end of the 1980s, the company was manufacturing residential, commercial and industrial generators, and in 1989, Generac introduced the first gaseous-fueled automatic home standby system. In 1992, Generac began private labeling generator sets for Caterpillar, Inc.
Elements of the Productivity Ratio. The labor productivity ratio, in its simplest form, looks like this: output/input. Simply divide the amount of output you're getting by the amount of work you're putting into it. This requires you to assign numbers to both input and output so that you get a meaningful figure.
The formula -- average hourly labor rate multiplied by standard labor hours per unit -- is used to arrive at a standard labor cost per unit, which then becomes the allocation base. For example, if the average labor rate is $15 per hour and the standard hours per unit for an item is 30 minutes, the direct labor cost allocated to each item is $7.50. Efficiency Indicators Average labor rates for each department are typically calculated annually and used throughout the coming year.