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.
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Hello,
I’m trying to determine how they got 192/180*100%, in particular 192. The question is as follows:
Standard time allowed per unit: 16 minutes
Actual ouput in period 720 units
Actual hours worked 180
Budgeted hours 185determine, labour efficiency ratio, capacity ratio, and production volume ratio.
Thanks,
RThe actual output was 720 units. Given that each unit should take 16 minutes, then they should have worked 720 x (16/60) = 192 hours.
Therefore the efficiency ration is 192/180 = 106.7%
Have you watched my free lectures on this? The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
Hi John,
Thank you so much for this explanation. I only watched a few video’s so far.
Thanks,
R.
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