Advantages of Labour Hours Saved Calculation
Advantages of Labour hours
saved includes the following
1. Efficiency of Employee
Labour hours saved shows
the efficiency or performance of the employees. Therefore labour hour saved is
important controlling tool of performance.
2. Reward Announcement
Labour hours saved
calculation may be used to determine the rewards for employees. Labor Hours
saved can be calculated by the following formula
Hour Saved= Expected Hour
> Actual Hour
Hour Saved = Expected Hour
– Actual Hours
Example
Hours of Labour for a unit produced= 8 Hrs
Unit produced during the week =2000
Actual Labour during the week = 4000
Calculate hour saved on project?
Solution
Expected Hours = units x hour required per
unit
=2000 x8
= 16000
Actual Labour hours on
project= 12,000
Hour saved= Standard hours
– actual hours
= 16000-12000
=4000 Hours Saved
No comments:
Post a Comment
Note: only a member of this blog may post a comment.