pev PEV june 04 exam task 2.1 a) vi)
Options
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
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
0
Comments

Hi
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
Regards
Marg0 
thanks thats brilliant
why cant they include working in exam answers on this site would have cleared it up in a jiffy0
Categories
 All Categories
 1.2K Books to buy and sell
 2.3K General discussion
 12.4K For AAT students
 263 NEW! Qualifications 2022
 144 General Qualifications 2022 discussion
 9 AAT Level 2 Certificate in Accounting
 44 AAT Level 3 Diploma in Accounting
 66 AAT Level 4 Diploma in Professional Accounting
 8.8K For accounting professionals
 23 coronavirus (Covid19)
 268 VAT
 90 Software
 271 Tax
 133 Bookkeeping
 7.1K General accounting discussion
 195 AAT member discussion
 3.8K For everyone
 38 AAT news and announcements
 345 Feedback for AAT
 2.8K Chat and offtopic discussion
 578 Job postings
 16 Who can benefit from AAT?
 35 Where can AAT take me?
 42 Getting started with AAT
 26 Finding an AAT training provider
 48 Distance learning and other ways to study AAT
 25 Apprenticeships
 66 AAT membership