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labour efficiency ratio

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › labour efficiency ratio

  • This topic has 3 replies, 2 voices, and was last updated 8 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • June 25, 2016 at 9:41 am #324030
    sxhawty
    Member
    • Topics: 56
    • Replies: 25
    • ☆☆

    A hotel has 120 identical bedrooms. It uses labour efficiency percentages to compare the performance of four groups of workers (A, B, C and D) employed to clean the bedrooms. The standard time to clean a bedroom is 40 minutes.

    The following data for last week are available:

    Group A actual hrs worked- 128 actual #of bedrooms cleaned – 198
    B actual hrs worked- 140 actual #of bedroom cleaned- 207
    C actual hrs worked- 124 actual #of bedroom cleaned- 186
    D actual hrs worked- 108 actual #of bedroom cleaned- 165

    it says that the correct answer is group A for most efficient, but they didn’t show the solution..

    the formula for labour eff. ratio is standard hrs for actual output/actual hrs worked*100

    if im gonna get for group A is this solution correct .. 0.66*198/128*100?
    and 0.66 came from 40minutes/60minutes

    June 25, 2016 at 10:41 am #324051
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    For A, the standard time for cleaning = 198 rooms x 40/60 hours = 132 hours.

    Therefore efficiency ratio = 132/128 = 103%

    June 25, 2016 at 11:16 am #324058
    sxhawty
    Member
    • Topics: 56
    • Replies: 25
    • ☆☆

    Thankyou sir, that made sense..

    June 25, 2016 at 6:13 pm #324081
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    You are welcome 🙂

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