Labour costing

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June 17, 2015 at 3:20 pm #257480
Mun
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Hi,Can anyone teach me how to do this question?

The standard time for the production of one unit of product X is 20 minutes.1700 units of the product were budgeted to be manufactured.this was 200 units more than actual.During the period,480 hours were worked.what was the efficiency ratio?
June 17, 2015 at 6:21 pm #257515
HazE
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Effeciency = expected time to make an output/ Actual time taken

Since actually there were 1500 units made and took 480 hrs or 28800 mins
The expected or standard time for 1500 is 1500*20 =30000mins

So effecieny is 30000/28800= 1.04
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