Labour Hours Saved Formula

Labour Hours Saved Formula

Labour Hour saved can be calculated by the following formula. Labour save is basically difference between expected hour and actual hour taken by labour on an activity.

Hour Saved= Expected Hour > Actual Hour

Hour Saved = Expected Hour – Actual Hours

Example

Labour Hours required for Production of one unit= 6 Hour

Unit Produced=1000

Actual Hours taken by Labour Department = 5000

Calculate hour saved

Solution

Expected Hours = units x hour required per unit

=1000 x6

= 6000

Actual hours Spent or taken= 5000

Hour saved= Standard hours – actual hours

= 6000-5000

=1000 Hours Saved