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In the last period an organisation budgeted to work 116,000 hours manufacturing 29,000 units. Actual output last period was 26,000 units which took 108,000 hours to manufacture
the formula to get the labour efficiency ratio is
standard hrs for actual output/actual hrs worked x 100so; 26,000 units x 116,000hours = 3,016,000,000/108,000×100
im supposed to get the answer by percentage but what im getting is 27,925.9why is it like that?
Why on earth do you want to multiply 26,000 by 116,000? The question does not say that they took 116,000 hours each – that would be ridiculous – they take 116,000 hours in total.
(If they took 116,000 hours for each unit, it would mean they were taking over 13 years to produce one unit 🙂 )
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