Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Comparative Profit Statement with and without labour turnover. Your organisation is experiencing a high labour turnover in recent years and the management would like you
Comparative Profit Statement with and without labour turnover. Your organisation is experiencing a high labour turnover in recent years and the management would like you to submit a report on the loss suffered by the company due to such labour turnover. Following figures are available for your consideration - Sales 600 lakh Direct Materials 150 lakh Direct Labour 48 lakh on 4,80,000 man-hours Other Variable Expenses 60 lakh Fixed Costs 380,00,000 lakh The direct man-hours include 9,000 man-hours spent on training and replacements only 50% of which were productive. Farther, during the year 12,000 man-hours of potential work could not be availed of because of delayed replacement. The cost due to separation and replacements amounted to 1 lakh. On the basis of the above data, prepare a comparative statement showing actual profit vis--vis the profit would have been earned had there been no labour turnover
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started