Labour Hours Saved Example

Labour Hours Saved Example

Labour Hours saved concept can be explained with following simple example. Labour hour saved is situation, where standard hour more than actual hours.

Hour Saved= Expected Hour > Actual Hour

Hour Saved = Expected Hour – Actual Hours

Example

Labour Requirement per unit= 4 Hour

Unit to be produced=500

Actual Labour Hours = 1800

Calculate hour saved

Solution

Expected Hours = units x hour required per unit

=500 x4

= 2000

Actual hours Spent or taken= 1800

Hour saved= Standard hours – actual hours

= 2000-1800

=200 Hours Saved