Question

An employee is paid on the expectation of working 40 hours a week. He ends up billing the client 26 hours of those hours for that week.

a. Calculate the utilization rate for the week.

Answer 1

The utilization rate is calculated by dividing the billed hours by the expected hours and multiplying by 100. In this case, the employee's utilization rate would be 65%.

Step-by-step explanation:

The utilization rate is a measure of productivity that compares the actual hours worked to the expected hours worked. To calculate the utilization rate, divide the number of billed hours by the expected hours and multiply by 100. In this case, the employee billed 26 hours out of the expected 40 hours, so the utilization rate would be (26/40) * 100 = 65%.