Efficiency Ratio – NBC Institute

MI – May 2022 – L1 – SA – Q9 – Basic Variance Analysis

Calculating efficiency ratio based on labor hours.

Question

XYZ manufacturing was able to achieve 95 percent of budgeted labour hours. If budgeted labour hours are 44,737 and standard hours produced is 42,075, what is the efficiency ratio?

A. 106%
B. 101%
C. 99%
D. 94%
E. 89%

Answer

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Tags: Efficiency Ratio, Labor Hours, Variance
Level: Level 1

Topic: Basic Variance Analysis
Series: MAY 2022

MI – May 2024 – L1 – SA – Q7 – Costing Techniques

Tests understanding of the calculation method for efficiency ratios using standard and actual hours worked.

Question

Which of the following control ratios is given by standard hours produced divided by actual hours worked? A. Activity ratio
B. Overhead efficiency ratio
C. Volume ratio
D. Capacity ratio
E. Efficiency ratio

Answer

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Tags: Actual Hours, Control Ratios, Efficiency Ratio, Performance metrics, Standard Hours
Level: Level 1

Topic: Costing Techniques
Series: MAY 2024

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 – May 2022 – L1 – SA – Q9 – Basic Variance Analysis

Calculating efficiency ratio based on labor hours.

Question

XYZ manufacturing was able to achieve 95 percent of budgeted labour hours. If budgeted labour hours are 44,737 and standard hours produced is 42,075, what is the efficiency ratio?

A. 106%
B. 101%
C. 99%
D. 94%
E. 89%

Answer

Find Related Questions by Tags, levels, etc.

Tags: Efficiency Ratio, Labor Hours, Variance
Level: Level 1

Topic: Basic Variance Analysis
Series: MAY 2022

MI – May 2024 – L1 – SA – Q7 – Costing Techniques

Tests understanding of the calculation method for efficiency ratios using standard and actual hours worked.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Actual Hours, Control Ratios, Efficiency Ratio, Performance metrics, Standard Hours
Level: Level 1

Topic: Costing Techniques
Series: MAY 2024

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: Efficiency Ratio

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MI – May 2022 – L1 – SA – Q9 – Basic Variance Analysis

Calculating efficiency ratio based on labor hours.

MI – May 2024 – L1 – SA – Q7 – Costing Techniques

Tests understanding of the calculation method for efficiency ratios using standard and actual hours worked.

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 – May 2022 – L1 – SA – Q9 – Basic Variance Analysis

Calculating efficiency ratio based on labor hours.

MI – May 2024 – L1 – SA – Q7 – Costing Techniques

Tests understanding of the calculation method for efficiency ratios using standard and actual hours worked.

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 – May 2022 – L1 – SA – Q9 – Basic Variance Analysis

Calculating efficiency ratio based on labor hours.

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MI – May 2024 – L1 – SA – Q7 – Costing Techniques

Tests understanding of the calculation method for efficiency ratios using standard and actual hours worked.

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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 – May 2022 – L1 – SA – Q9 – Basic Variance Analysis

Calculating efficiency ratio based on labor hours.

You're reporting an error for "MI – May 2022 – L1 – SA – Q9 – Basic Variance Analysis"

MI – May 2024 – L1 – SA – Q7 – Costing Techniques

Tests understanding of the calculation method for efficiency ratios using standard and actual hours worked.

You're reporting an error for "MI – May 2024 – L1 – SA – Q7 – Costing 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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