June 2004 PCR exam question, pg 7 labour efficiency ratio

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:24AM in AAT student discussion
Hi,
Would anyone be able to tell me how the labour effiency ratio is calculated ( task 2.1 vi), I know the answer is 96.2% but I cant seem to work it out!
Many thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:June 2004 PCR exam question, pg 7 labour efficiency ratio

    Hi

    Calculating Effeciency ratio for this paticular question :-
    You need to find out standard hours taken for actual output i.e.
    60,000/12,000 = 5 standard hour for 1 desk.
    Therefore 11000 desks x 5hours each = 55000 std. hours (should have taken) but it actually took 58200 hours
    Now to calculate the ratio :
    formula
    Standard hours for actual output / actual hours taken times 100

    55000/58200 x 100 = 96%

    See if it helps. Good luck for you exam

    I am sitting for exams on Monday and calculating ratios are Okay but writing and analysing bit is hard if anybody can give me any helpful tips
    thanks
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:June 2004 PCR exam question, pg 7 labour efficiency ratio

    Many thanks for your help! Good luck everyone!

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