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 100
so; 26,000 units x 116,000hours = 3,016,000,000/108,000x100
im supposed to get the answer by percentage but what im getting is 27,925.9
why is it like that?
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Labour efficiency ration
10y ago#1Why 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 :-) )
i am confused, how do you get the answer then?
10y ago#3standard hours per unit = 116,000 / 29,000
Therefore standard hours for actual output = 26,000 x 116,000/29,000 = 104,000
Actual hours worked = 108,000
Now you can use the formula that you typed before.
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