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Labor Ratios

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Labor Ratios

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by johnbriane.
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  • August 15, 2021 at 1:10 pm #631648
    maximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    Sir I read your comment on the previous question. I don’t want you to solve just give me a hint that idle hours will affect which of these three ratios?

    Budgeted hours – 12000
    Budgeted Units – 4000
    Actual hours – 14000
    Actual units – 4500
    Labor is said to be idle for 1500 hours.
    Find:
    (A) Efficiency Ratio
    (B) Capacity utilisation Ratio
    (C) Production Volume ratio

    August 16, 2021 at 3:00 pm #631755
    johnbriane
    Member
    • Topics: 170
    • Replies: 160
    • ☆☆☆

    And dear sir

    If efficiency ratio is more than 100% can we say our capacity variance will be a favorable one always provided this is the situation

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