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 185
determine, labour efficiency ratio, capacity ratio, and production volume ratio.
Thanks,
R
ACCA Forums
MAAccounting for Labour - Management Accounting
6y ago#1The 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.
6y ago#3You are welcome :-)
Topic lockedNew replies are closed.