CAF-5 · Chapter 4 · Question 2 of 10
A worker takes 30 minutes to produce one unit of a product. In an 8-hour shift, the worker produces 20 units. What is the worker's labour efficiency ratio?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) 125%
Explanation
Labour Efficiency = (Standard hours / Actual hours) × 100. Time Allowed (Standard hours) = 30 minutes / 60 minutes × 20 units = 10 hours. Actual hours taken = 8 hours. Efficiency = (10 hours / 8 hours) × 100 = 125%.
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