Question 16.TQ.9 : Using the data contained in the previous question, calculate...
Using the data contained in the previous question, calculate the following performance measures:
(a) efficiency ratio
(b) capacity ratio
(c) production volume ratio.
Performance measures for Anthea Ltd:
(a) Efficiency ratio:
\frac{SHP}{Actual hours} \times 100=\frac{8000}{10000}\times 100=80\%(b) Capacity ratio:
\frac{Actual hours}{Budgeted hours^{W} } \times 100=\frac{10000}{9000}\times 100=111.1\%(c) Production volume ratio:
\frac{SHP}{Budgeted hours^{W} } \times 100=\frac{8000}{9000}\times 100=88.9\%\frac{^W 135000}{15}
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