Objectives of Labour Hours Saved Calculation

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