Page 130 - F2 - MA Integrated Workbook STUDENT 2018-19

Chapter 6

4.4 Labour production/volume

The labour production volume ratio compares the number of hours
expected to be worked to produce actual output with the total hours
available for work (full capacity or budgeted hours).

Standard hours for actual output ÷ total budgeted hours × 100

Test your understanding 5

During a period, the actual hours worked by employees totalled 31,630.
Budgeted hours were 29,470 hours. The standard hours for the work totalled
30,502.

Calculate the following (each to one decimal place):

Efficiency %

Capacity %

Production/volume %

Illustrations and further practice

Now try TYU questions 6 and 7 from Chapter 6

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