pev PEV june 04 exam task 2.1 a) vi)

jimbob Registered Posts: 43 Regular contributor ⭐
having done the exam and checked answer my answer is wrong and i cant see how the answer is worked out as answer on site do not include working or formula
question is calculate the labour efficiency ratio
i was taught lab eff is standard hr for actual prod/ actual hrs worked yet the answer booklet gives diff answer can anyone help with the working for this ratio
any advice appreciated


  • Marg22
    Marg22 Registered Posts: 84 Regular contributor ⭐

    You have to look at the budgeted number of hours it takes to produce one desk.

    Budget 60,000 hrs / 12,000 desks = 5 hrs per desk

    Acutal desks produced were 11,200 x 5 hrs = 56,000 hrs. This is the amount of time it should have taken to produce 11,200 desks.

    Hours it should take 56,000/ actual hours it did take 58,200 x 100 = 96.2%
    This ratio shows that the company was not as efficient as the budget.

    The budget result is of course 100% because it sets its target and obviously hits it.

    Hope this helps


  • jimbob
    jimbob Registered Posts: 43 Regular contributor ⭐
    thanks thats brilliant
    why cant they include working in exam answers on this site would have cleared it up in a jiffy
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