A Company's Budgeted qty : 2000 Units
Normal Capacity :1500 Units
Direct Labour :100 per unit at Normal Efficiency
Assuming Actual Labour was 25% below normal efficiency
what is the Direct Labour in this situation
3 Replies
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 14 June 2013
direct labour 133.33(100/.75)
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 14 June 2013
it maens at 100% efficiency the labour required is 100 per unit.
so at 75%(100%-25%) the labour required is 100/75%
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