A firm plans to produce 1,980 units of a product per 8 hour shift. The standard productivity is 2 units per man hour. Average labour efficiency is 91%, idle time is 15% of attendance time and absenteeism is 20%. How many

CS Executive · Cost and Management Accounting · PYQS · June 2016
A firm plans to produce 1,980 units of a product per 8 hour shift. The standard productivity is 2 units per man hour. Average labour efficiency is 91%, idle time is 15% of attendance time and absenteeism is 20%. How many workers should be recruited to produce planned output —
(A) 200
(B) 124
(C) 136
(D) 151

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Labour Costing

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