Labour Hour Saved Formula
Labour Hour saved is a
situation, where expected hour are greater than actual hour taken by the labour
to perform a work. It means labour worked more efficiently
Hour Saved= Expected Hour
> Actual Hour
Hour Saved = Expected Hour
– Actual Hours
Example
1 unit requires 5 labour hour
500 units produced in 2000 hours
Calculate hour saved
Solution
Expected Hours =500 units x hour required
per unit
=500 x5
= 2500
Actual hours = 2000
Hour saved= Standard hours
– actual hours
= 2500-2000
=500 Hours
