Labour Capacity/Labour efficiency

Esme

Can someone please give me the ratios for these.

Thx... slowly getting there!

sdv

I believe you mean F.Overheads Capacity variance and F.Overheads Efficiency variance

The total of FO Capacity + FO Efficiency = FO Volume(production) variance

Capacity Variance = ( Budgeted L/Hrs less Actual L/hrs times ) times Overhead Absorption rate
Efficiency Variance = ( Actual Labours Hrs less flexed (expected) Labour Hrs) times Overhead Absorption rate

SandyHood

If you are asking about ratios then these are very similar to the variances, divide rather than subtract; i.e.
Labour capacity = hours worked
Labour capacitynnnbudgeted hours

Labour efficiency = standard hours produced*
Labour capacitynnnhours worked

*standard hours produced = units produced x standard hours per unit

Esme

Yes Sandy, that's what I meant.. thanks very much once again