Labour capacity and Efficiency ratios

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:09AM in AAT student discussion
Can anyone explain to me the above ratios as they are not in my books and I'm sure they will be in tommorrows papers. <BR>Thank you all in advance and good luck for this week.

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Labour capacity and Efficiency ratios

    Labour capacity ratio is: actual hours x 100<BR> budgeted hours<BR><BR>Efficiency ratio is: Standard Hours produced x 100<BR> actual hours worked<BR><BR>You may also want to know:<BR><BR>Activity ratio: standard hours produced x 100<BR> budgeted hours worked<BR><BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Labour capacity and Efficiency ratios

    These are strikingly similar to the overhead variance formulae and so this may help you to remember them without trying to force something new into your head which I'm sure if it's like mine is already too full and fit to explode.<BR><BR>

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