• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Labour efficiency ration

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Labour efficiency ration

  • This topic has 3 replies, 2 voices, and was last updated 9 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • June 12, 2016 at 10:07 am #322529
    sxhawty
    Member
    • Topics: 56
    • Replies: 25
    • ☆☆

    In the last period an organisation budgeted to work 116,000 hours manufacturing 29,000 units. Actual output last period was 26,000 units which took 108,000 hours to manufacture

    the formula to get the labour efficiency ratio is
    standard hrs for actual output/actual hrs worked x 100

    so; 26,000 units x 116,000hours = 3,016,000,000/108,000×100
    im supposed to get the answer by percentage but what im getting is 27,925.9

    why is it like that?

    June 12, 2016 at 1:01 pm #322555
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54696
    • ☆☆☆☆☆

    Why on earth do you want to multiply 26,000 by 116,000? The question does not say that they took 116,000 hours each – that would be ridiculous – they take 116,000 hours in total.

    (If they took 116,000 hours for each unit, it would mean they were taking over 13 years to produce one unit 🙂 )

    June 20, 2016 at 6:31 am #323537
    sxhawty
    Member
    • Topics: 56
    • Replies: 25
    • ☆☆

    i am confused, how do you get the answer then?

    June 20, 2016 at 6:52 am #323542
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54696
    • ☆☆☆☆☆

    standard hours per unit = 116,000 / 29,000
    Therefore standard hours for actual output = 26,000 x 116,000/29,000 = 104,000
    Actual hours worked = 108,000

    Now you can use the formula that you typed before.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • John Moffat on Overcapitalisation and Overtrading – ACCA Financial Management (FM)
  • AdityaSairam on Overcapitalisation and Overtrading – ACCA Financial Management (FM)
  • Ayeshaacca on IFRS 16 Identifying a lease – ACCA (SBR) lectures
  • darshan.69 on Chapter 3 – Property Income and Investments – Individuals TX-UK FA2023
  • @VIBHOR123 on FA Chapter 2 Questions The Statement of Financial Position and Statement of Profit or Loss

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in