Question

Problem 1:

The following employee changes in BSA Mfg. Inc. for 2019 are as follows:

Employees at the beginning of 2019	1,050
Employees recruited (of which 50 of them replaced those leavers discharged by the management of BSA, while the remainder are due to expansion plans to be made by BSA for future years)	150
Employees left during the year (including the abovementioned employees replaced)	250
Employees at the end of 2019	950

Assume that there is no other information as to the changes in employees, determine the labor turnover based on the following methods (round off your answers to two decimal places expressed in percent):

1.    Separation method

2.    Replacement method

3.    Flux method

Problem 2:

BSA Factory provides for an incentive scheme for its factory workers which features a combined minimum guaranteed wage and a piece rate. Each worker is paid P11.25 per piece with a minimum guaranteed wage of P875 per week. Production report for the week show:

Employee	Units Produced
Krista	67
Jose	78
Sophiya	80
Crisia	82
Maye	72
Angelo	75

Determine the amount of the following:

1.    Direct labor

2.    Factory overhead

Answer 1

Average Number of wrokers During 2019 = 1050+950/2 =   1000  
Seperation Method                        
                      
   Total Employeed Left During the Year    =   250   -  
   Repalced on Manegment Decision       =   50      
   Employees Seperated without replacement   =250-50 = 200      
                          
Labour Turnover =  No.  of  workers  left  or  separated  during  a  period / Average  number  of  workers  on  role  during  that  period x 100                          
                   =(200 /1000)*100      
                   20%  
Replacement Method                         
Labour Turnover = No. of workers replaced during a period / Average number of workers on role during that period x 100                          
                   =(50 /1000)*100      
                   5%  
Flux Method                          
Labour Turnover =
(No.of workers separated in a period + No. of workers replaced in the same period) / Average number of workers on role during that period x100                          
                   =(250 /1000)*100      
                   25%  
                          
Piece Rate       11.25                  
Minimum       875                  
                          
Employee   Units Produced       Piece Rate Amount OH (825-PR Amount)
Krista 67 753.75 121.25      
Jose 78 877.50              
Sophiya 80    900.00   
Crisia 82 922.50              
Maye 72 810.00 65.00      
Angelo 75 843.75 31.25      
Total 5107.50 217.50    
Direct Labor       5107.50              
   Factory OH       217.50