- This topic has 1 reply, 2 voices, and was last updated 1 year ago by
.
- Posts
62 000 units of a company’s single product were manufactured last period in 1 920 hours. This compares with a budget of 6 500 units in 1 950 hours. What was the labour efficiency ratio ?
A. 95.4 % B. 103.2% C. 96.9 % D. 98.5%For this question I calculated with the formula Labour Efficiency Ratio= Standard hrs/actual hrs
so, for standards 6500/1950 x 62000= but the number is not correct and i am confusing, please help me solve this question.There is either a typing error in your book, or you have copied the question wrongly.
There is no way that they will have budgeted on producing only 6,500 units and then having managed to produce 62,000 units – that would be ridiculous.
Either they will have budgeted on producing 6,500 units and actually produced 6,200 units (or alternatively they will have budgeted on producing 65,000 units and actually produced 62,000 units). In either case the correct answer will be C.
- You must be logged in to reply to this topic.