accounting for labour question ?

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October 11, 2015 at 10:41 pm #275917

minhaje3
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sir this question is from kaplan exam kit f2

a company records the following concerning a product

standard time allowed p.u 16 mins
actual output in period 720 units
actual hrs worked 180
budgeted hrs 185

calculate labor efficiency ratio:
they calculated 192/180 x 100% = 106.7

where did they get the 192 from? thank you

October 12, 2015 at 7:11 am #275939

John Moffat
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The standard time for the actual output of 720 units is 720 x 16 = 11,520 minutes

In hours this is 11,520 / 60 = 192 hours.
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