Costing June 2004

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:09AM in AAT student discussion
Please could someone help me I am trying to do the June 2004 costing paper<BR>and in section 2 it ask you to work out labour capacity ratio and labour efficiency ratio please could you explain the ratio to me ive been trying all morning

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Costing June 2004

    Aly, hope this helps, capacity is hours worked against budgeted hours, efficiency is actual desks times by the budgeted hourly unit, divide by actual labour hours, this will see how efficient you are, in this example, you should of taken 56,000 hours so are inefficient, therefore answer is 96.2%.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Costing June 2004

    Thanks lofty I understand it now

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