Capacity Ratio – NBC Institute

MI – Nov 2020 – L1 – SA – Q6 – Costing Techniques

Calculate the capacity ratio based on actual and budgeted labour hours.

Question

The data below are from the records of a company:

Budgeted labour hours: 4,500
Actual labour hours: 4,200
Standard hours produced: 4,400

The capacity ratio is:

A. 107%

B. 102%

C. 98%

D. 95%

E. 93%

Answer

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Tags: Capacity Ratio, Labour Hours, Variance Analysis
Level: Level 1

Topic: Costing Techniques
Series: NOV 2020

MI – Nov 2014 – L1 – SA – Q4 – Forecasting Techniques

Calculate the capacity ratio based on the labour hours and standard hours data.

Question

The following data were extracted from the records of ABZ Limited for the month of July:

Budgeted Labour hours: 6,400
Actual Labour hours: 6,240
Standard hours produced: 6,480

Calculate the capacity ratio:

A. 103%
B. 102.56%
C. 98%
D. 97.5%
E. 97%

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capacity Ratio, Efficiency, Labour Hours
Level: Level 1

Topic: Forecasting Techniques
Series: NOV 2014

MA – Nov 2021 – L2 – Q3a – Standard Costing and Variance Analysis

Calculate and interpret the efficiency, capacity, and production volume ratios based on provided data.

Question

a) GG Ltd is into fuel processing and transportation. GG Ltd produces three types of fuel, namely: Petrol, Diesel, and Pre-mix fuel.

The standard time for the production of the fuel types are:

Petrol: 50 minutes per metric tonne
Diesel: 30 minutes per metric tonne
Pre-mix fuel: 45 minutes per metric tonne.

The production budget for August is as follows:

Petrol: 42,000 metric tonnes
Diesel: 60,000 metric tonnes
Pre-mix fuel: 45,000 metric tonnes

The actual data for the month were as follows:

Labour: 100,000 hours
Production:
- Petrol: 45,000 metric tonnes
- Diesel: 50,000 metric tonnes
- Pre-mix fuel: 40,000 metric tonnes.

Required:
Compute and interpret the following:
i) The efficiency ratio. (3 marks)
ii) The capacity ratio. (3 marks)
iii) The production volume or activity ratio. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capacity Ratio, Efficiency Ratio, Performance Measurement, Production Volume Ratio
Level: Level 2

Topic: Standard Costing and Variance Analysis
Series: NOV 2021

MI – Nov 2020 – L1 – SA – Q6 – Costing Techniques

Calculate the capacity ratio based on actual and budgeted labour hours.

Question

The data below are from the records of a company:

Budgeted labour hours: 4,500
Actual labour hours: 4,200
Standard hours produced: 4,400

The capacity ratio is:

A. 107%

B. 102%

C. 98%

D. 95%

E. 93%

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capacity Ratio, Labour Hours, Variance Analysis
Level: Level 1

Topic: Costing Techniques
Series: NOV 2020

MI – Nov 2014 – L1 – SA – Q4 – Forecasting Techniques

Calculate the capacity ratio based on the labour hours and standard hours data.

Question

The following data were extracted from the records of ABZ Limited for the month of July:

Budgeted Labour hours: 6,400
Actual Labour hours: 6,240
Standard hours produced: 6,480

Calculate the capacity ratio:

A. 103%
B. 102.56%
C. 98%
D. 97.5%
E. 97%

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capacity Ratio, Efficiency, Labour Hours
Level: Level 1

Topic: Forecasting Techniques
Series: NOV 2014

MA – Nov 2021 – L2 – Q3a – Standard Costing and Variance Analysis

Calculate and interpret the efficiency, capacity, and production volume ratios based on provided data.

Question

a) GG Ltd is into fuel processing and transportation. GG Ltd produces three types of fuel, namely: Petrol, Diesel, and Pre-mix fuel.

The standard time for the production of the fuel types are:

Petrol: 50 minutes per metric tonne
Diesel: 30 minutes per metric tonne
Pre-mix fuel: 45 minutes per metric tonne.

The production budget for August is as follows:

Petrol: 42,000 metric tonnes
Diesel: 60,000 metric tonnes
Pre-mix fuel: 45,000 metric tonnes

The actual data for the month were as follows:

Labour: 100,000 hours
Production:
- Petrol: 45,000 metric tonnes
- Diesel: 50,000 metric tonnes
- Pre-mix fuel: 40,000 metric tonnes.

Required:
Compute and interpret the following:
i) The efficiency ratio. (3 marks)
ii) The capacity ratio. (3 marks)
iii) The production volume or activity ratio. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capacity Ratio, Efficiency Ratio, Performance Measurement, Production Volume Ratio
Level: Level 2

Topic: Standard Costing and Variance Analysis
Series: NOV 2021

Question Tag: Capacity Ratio

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MI – Nov 2020 – L1 – SA – Q6 – Costing Techniques

Calculate the capacity ratio based on actual and budgeted labour hours.

MI – Nov 2014 – L1 – SA – Q4 – Forecasting Techniques

Calculate the capacity ratio based on the labour hours and standard hours data.

MA – Nov 2021 – L2 – Q3a – Standard Costing and Variance Analysis

Calculate and interpret the efficiency, capacity, and production volume ratios based on provided data.

MI – Nov 2020 – L1 – SA – Q6 – Costing Techniques

Calculate the capacity ratio based on actual and budgeted labour hours.

MI – Nov 2014 – L1 – SA – Q4 – Forecasting Techniques

Calculate the capacity ratio based on the labour hours and standard hours data.

MA – Nov 2021 – L2 – Q3a – Standard Costing and Variance Analysis

Calculate and interpret the efficiency, capacity, and production volume ratios based on provided data.

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MI – Nov 2020 – L1 – SA – Q6 – Costing Techniques

Calculate the capacity ratio based on actual and budgeted labour hours.

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MI – Nov 2014 – L1 – SA – Q4 – Forecasting Techniques

Calculate the capacity ratio based on the labour hours and standard hours data.

You're reporting an error for "MI – Nov 2014 – L1 – SA – Q4 – Forecasting Techniques"

MA – Nov 2021 – L2 – Q3a – Standard Costing and Variance Analysis

Calculate and interpret the efficiency, capacity, and production volume ratios based on provided data.

You're reporting an error for "MA – Nov 2021 – L2 – Q3a – Standard Costing and Variance Analysis"

MI – Nov 2020 – L1 – SA – Q6 – Costing Techniques

Calculate the capacity ratio based on actual and budgeted labour hours.

You're reporting an error for "MI – Nov 2020 – L1 – SA – Q6 – Costing Techniques"

MI – Nov 2014 – L1 – SA – Q4 – Forecasting Techniques

Calculate the capacity ratio based on the labour hours and standard hours data.

You're reporting an error for "MI – Nov 2014 – L1 – SA – Q4 – Forecasting Techniques"

MA – Nov 2021 – L2 – Q3a – Standard Costing and Variance Analysis

Calculate and interpret the efficiency, capacity, and production volume ratios based on provided data.

You're reporting an error for "MA – Nov 2021 – L2 – Q3a – Standard Costing and Variance Analysis"

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