Solve this

Ganesh · 11 Jan 2025

Certainly, let's solve the given problem. Assumptions: * Standard Hours per week: 40 hours (assuming a standard 8-hour workday) * Actual output: Not explicitly provided, so we'll assume it's 100 units (this can be adjusted if you have the actual output value) Calculations: i) Actual Hours Worked: * Actual working employees: 125 * Standard working hours per week: 40 hours * Days per week: 6 days * Weeks in the month: 4 weeks Actual Hours Worked = 125 employees * 40 hours/week * 6 days/week * 4 weeks = 120,000 hours ii) Standard Hours for Actual Output: * Efficiency Ratio: 110% (meaning the actual output is 110% of the standard output) * Assumed Actual Output: 100 units Standard Hours for Actual Output = 100 units / (110% efficiency) = 90.91 hours iii) Activity Ratio: * Actual Hours Worked: 120,000 hours * Maximum Capacity: 150 employees * 40 hours/week * 6 days/week * 4 weeks = 144,000 hours Activity Ratio = Actual Hours Worked / Maximum Capacity = 120,000 hours / 144,000 hours = 0.8333 or 83.33% iv) Standard Capacity Usage Ratio: * Activity Ratio: 0.8333 * Efficiency Ratio: 110% (or 1.1) Standard Capacity Usage Ratio = Activity Ratio * Efficiency Ratio = 0.8333 * 1.1 = 0.9166 or 91.66% Interpretation: * Actual Hours Worked: The company's employees worked a total of 120,000 hours during the month. * Standard Hours for Actual Output: If the company were operating at 100% efficiency, it would have taken 90.91 hours to produce the actual output. * Activity Ratio: The company utilized 83.33% of its maximum capacity. * Standard Capacity Usage Ratio: Considering both activity and efficiency, the company utilized 91.66% of its standard capacity. Note: These calculations are based on the assumptions made. If you have the actual output value, you can replace the assumed value and recalculate the standard hours for actual output. Let me know if you have any other questions or require further clarification!