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A company makes a product for which the standard hour is 0.5 . The budgeted production hours for a given week were 820. During the week the production staff were able to produce 380 units of product. Staff were paid for 800 hours. During the week 20 production hours were lost due to a shortage of material.
What was the efficiency ratio?
and the solution I have is :
efficiency ratio= actual output in standard hours/actual hours* 100%=380/0.5
_______ * 100% = 97.44%
780 hrs.my question is that why did we divide 380 by 0.5 and not multiply it?
Because they are supposed to make 1 unit every 30 minutes or 2 units every hour. 380 hours x 2 = 760 hours
safwanstark99: Please do not answer in this forum because it is the Ask the Tutor Forum, and you are not the tutor (but please do help people in the other Paper MA forum).
However, on this occasion thank you – what you have written is correct.Saheraslam: What safwanstark99 hs written is correct. However please do not push to get a reply less that 2 hours after asking your question. We do not sit at the computer for 24 hours a day (especially given that you are in a different time zone) but we always reply within 24 hours. If you need an answer sooner then you must ask sooner!!!
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