The profitabililty position of TARGET LTD. for the year ending 31.03.2006 is as under. The profit for
Question:
The profitabililty position of TARGET LTD. for the year ending 31.03.2006 is as under.
The profit for the year did not mach with company's expectation and works management attributed it to labour turnover.
Analysis of the data revealed the following:
The effectiveness of direct labour hours put in by apprentice workmen was 50% and delay in replacing against separations during the year resulted in loss of 20,000 Direct labour hours.
You are required to calculate the loss of profit on account of loss of production from Labour turnover.
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Effective direct labour hours Permanent workmen Apprentice workmen 50 of 80000 hrs Sales per direct ...View the full answer
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