Accounting for Labour BPP Question

This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.

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September 6, 2022 at 5:38 pm #665413
bazif17
Participant
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Dear John,

Please can you explain how the decimals (under the standard hours heading) were calculated?

Product Units Standard Machine Hours Actual Production Units
W 15000 3000 12000
X 20000 8000 25000
Y 14000 7000 16000
Z 6000 9000 5000

Total Machine Hours worked in the period amounted to 29,000 hours.

What was the efficiency ratio in the year, as a percentage to one decimal place?

Answer:

Product Units Standard Hours
W 12000 (x0.2) 2400
X 25000 (x0.4) 10000
Y 16000 (x0.5) 8000
Z 5000 (x1.5) 7500
September 7, 2022 at 8:45 am #665531
John Moffat
Keymaster
- Topics: 57
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For W, the standard hours per unit are 3,000/15,000 = 0.2

It is the same logic for each of the other three 🙂
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