Objectives of Labour Hours Saved Calculation
Labour hours saved is
calculated to determine the performance of the employees or group of employees.
Furthermore, labour hours saved information can be used to disburse the bonus
among employees.
Hour Saved= Expected Hour
> Actual Hour
Hour Saved = Expected Hour
– Actual Hours
Example
Number of Hours required= 5 Hour
Unit to be produced=1000
Actual Labour taken for on job = 4000
Calculate hour saved on project?
Solution
Expected Hours = units x hour required per
unit
=1000 x5
= 5000
Actual Labour hours on
project= 4000
Hour saved= Standard hours
– actual hours
= 5000-4000
=1000 Hours Saved
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