labour efficiency and capacity ratios
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Hi <BR>can anybody help, I am doing the PEV June 04 and in section 2 <BR>I can't seem to work out the two labour ratios.<BR>I am going mad trying to work them out. <BR>I have got the answers but still can't figure it out.<BR>BRAIN GONE DEAD<BR>mandyc
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labour efficiency and capacity ratios
Ok, I may be able to help. Tell me the answers first and then if its the same answer as I have i'll tell you how i worked it out!0 -
labour efficiency and capacity ratios
hi, guess this wud help....<BR><BR>the solutions:(ACTUAL)<BR><BR>LABOUR CAPACITY RATIO=actual dirrect labour hours/budgeted direct labour hours * 100<BR><BR>i.e, 58,200hrs/60,000hrs*100 = 97%<BR><BR>(BUDGETED)<BR>60,000/60,000*100 = 100%<BR><BR>LABOUR EFFICIENCY RATIO:(ACTUAL)<BR>It takes 5 hrs to produce 1 desk i.e, 60,000 hrs/12000 desks produced<BR><BR>Number of desks to be produced in 58,200hrs = 58,200hrs/ 5 hrs per desk<BR>i.e, 11640desks.<BR><BR>therefore, labour efficiency = actual no. of desks actually produced/ actual no. of desks to be produced * 100<BR>i.e, 11,200/11,640*100 = 96.2%<BR><BR>(BUDGETED)<BR>12,000/12,000*100 = 100%<BR><BR>all the best for ur exams,<BR>bye!!<BR><BR><BR>0 -
labour efficiency and capacity ratios
Hi Mandy,<BR><BR>Labour Capacity Ratio= Actual DLH/Budgeted DLH x100 (straightforward)<BR><BR>To work out the efficiency you would normally take the Actual number of desks produced and divide that into the budgeted amount of desks produced and then muiltiply by 100.<BR><BR>However, you see in the answer to Labour Capacity Ratio this was 97%.<BR><BR>If you work out 97% of the Budgeted number of desks produced that will give a flexed budget of 11640. Now the rest is straightforward:<BR><BR>Actual number of desks produced 11200 /flexed budgeted number of desks produced 11640 x 100 = 96.2%<BR><BR>Hope this helps<BR>Laura0