Your organisation is experiencing a high labour turnover in recent years and inanagement would like you...

 

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Your organisation is experiencing a high labour turnover in recent years and inanagement 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 Direct Materials Direct Labour Other Variable Expenses Fixed Overheads Rs. 600 lakhs Rs. 150 lakhs Rs. 48 lakhs on 4,80,000 manhours Rs. 60 lakhs Rs. 80 lakhs . The direct manhours include 9,000 manhours spent on trainees and replacement, only 50% of which were productive. Further, during the year 12,000 manhours of potential work could not be availed of because of delayed replacement. The cost incurred due to separations and replacements amounted to Rs. 1 lakh. On the basis of above data, prepare a comparative statement showing actual profit vis-a-vis the profit which would have been realised had there been no labour turnover. Your organisation is experiencing a high labour turnover in recent years and inanagement 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 Direct Materials Direct Labour Other Variable Expenses Fixed Overheads Rs. 600 lakhs Rs. 150 lakhs Rs. 48 lakhs on 4,80,000 manhours Rs. 60 lakhs Rs. 80 lakhs . The direct manhours include 9,000 manhours spent on trainees and replacement, only 50% of which were productive. Further, during the year 12,000 manhours of potential work could not be availed of because of delayed replacement. The cost incurred due to separations and replacements amounted to Rs. 1 lakh. On the basis of above data, prepare a comparative statement showing actual profit vis-a-vis the profit which would have been realised had there been no labour turnover.