Correct Efficiency formula

[LaneDawg]

A question has arisen in our department on the correct formula to use for Labor Efficiency using downtime.

Option 1 : (Hours allowed + downtime)/Hours worked

Option 2 : (Hours allowed)/(Hours worked - downtime)

All input is appreciated!

 

[LaneDawg]

The equations should have been:

Option 1 : (Hours EARNED + downtime)/Hours worked

Option 2 : (Hours EARNED)/(Hours worked - downtime)

Again, all input is appreciated!