Labour Capacity utilization Question

Labour Capacity utilization Question

Labour capacity utilization practice question for the following formula has been given below

Labour Capacity utilization Ratio =   Hour Spent by Labour   x 100

                                                       Total Available hour

Question

Availability of labour for project in hours= 1500

Actual Hour Spent on the project = 1400

How resources were used?

Solution

Labour Capacity utilization Ratio =   Hour Spent by Labour   x 100

                                                      Total Available hour

=(1400/1500) x 100

=93.3%

The above question shows that 93.3 percent of resources were utilized.

Labour Capacity utilization Practice Question

Company has 20 labour and each labour can work 8 Hour in week, working days 5

Labour spent total hour during the week were = 700

How Capacity was utilized?