Labour Capacity utilization Formula

Labour Capacity utilization Formula

Labour capacity utilization is calculated by dividing labour hours spent by the labour on job with total labour hours available.

Labour Capacity utilization Ratio =   Hour Spent by Labour   x 100

                                                  Total Available hour

Example

Total hour available = 1200

Hour worked = 950

Calculate Labour Capacity utilization?

Solution

Labour Capacity utilization Ratio =   Hour Spent by Labour   x 100

                                                      Total Available hour

=(950/1200) x 100

=79.16%

Labour Capacity utilization shows about resources utilization information.