Q1

From the following information, calculate labour turnover rate and flux
rate:
No. of workers as on 01.04.2018 = 8,000
No. of workers as on 31.03.2019 = 9,600
During the year, 500 workers left while 100 workers were discharged, 2,200
workers were
recruited during the year of which 700 workers were recruited because of exits
and the rest
were recruited in accordance with expansion plan.
ANS
Average number of workers during the year = 8000+9600/2 = 8800
Separation method
Labour turnover rate = no. of employees who left during the period/ Average
number of workers during the period x100
= 500+100/8800 x 100 = 6.82%
Replacement method
Labour turnover rate = no. of employees who replaced during the period/
Average number of workers during the period x100
= 700/8800 x 100 = 7.95%
Flux method
Flux rate = no. of separations + no. of replacements/ Average number of
workers during the year x100
= 600+700/8800 x 100 = 14.77%
OR
Flux rate = no. of separations + no. of additions/ Average number of workers
during the year x100
= 600+2200/8800 x 100 = 31.82%
Q2
The following information is collected from the personnel department of ST
limited:
Number of workers at the beginning of July 2018 150
Number of workers at the end of July 2018 250
Number of workers left the company during July 2018 25
Number of workers discharged during the month 5
Number of workers replaced due to resignations and discharges 20
Calculate the Labour Turnover Rate and Equivalent Annual Rate for the
factory by different methods.
ANS
Average number of workers during the year = 150+250/2 = 200
Separation method
Labour turnover rate = no. of employees who left during the period/ Average
number of workers during the period x100
= 25+5/200 x 100 = 15%
Equivalent Annual Rate = Turnover rate for the period/ No. of days in the
period x 365
= 15/31 x365 = 176.61%
Replacement method
Labour turnover rate = no. of employees who replaced during the period/
Average number of workers during the period x100
= 20/200 x 100 = 10%
Equivalent Annual Rate = Turnover rate for the period/ No. of days in the
period x 365
= 10/31 x365 = 117.74%
Flux method
Flux rate = no. of separations + no. of replacements/ Average number of
workers during the year x100
= 25+5+20/200 x 100 = 25%
Equivalent Annual Rate = Turnover rate for the period/ No. of days in the
period x 365
= 25/31 x365 = 294.35%
Q3
From the following information, calculate the labour turnover rate and labour
flux rate:
Number of workers at the beginning of the year: 3,800
Number of workers at the end of the year: 4,200
During the year, 40 workers leave while 160 workers are discharged. 600
workers are recruited during the year. Of these, 150 workers are recruited
because of leavers and the rest are engaged in accordance with an expansion
scheme.
ANS
Average number of workers during the year = (3,800 + 4,200)/2 = 4,000
Separation method
Labour Turnover Rate = (Number of workers who left during the year/ Average
number of workers during the year) x 100
= (40+160)/4000 x 100 = 5%
Replacement method
Labour Turnover Rate = (Number of workers replaced during the year/ Average
number of workers during the year) x 100
= 150 x100/4000 = 3.75%
Flux method
Labour Flux Rate = (Number of additions + separations during the year/
Average number of employees during the year) x 100
= (600+200 x100)/4000 = 20%
OR
Labour Flux Rate = (Number of replacements + separations during the year/
Average number of employees during the year) x 100
=(150+160+40)/4000 x 100
=8.75%
Labour flux rate denotes total change in the composition of labour force due to
additions and separations of workers.

Q4
On the basis of the following information, calculate the earnings of Ghanshyam
and Raju according to Straight piece basis, and Taylor's differential piece rate
system. Standard production 8 units per hour Normal time rate ₹4 per hour
Differentials to be applied:
80% of piece rate below standard
120% of piece rate at or above standard
In a 9 hours day, Ghanshyam produced 60 units and Raju produced 82 units.
ANS
Standard production
1 hour = 8 units
x 9 hours = 72 units
actual production = 72 units
Piece rate per hour
8 units = 4 rs
1 unit = (?)
= 4/8 = 0.5
PARTICULARS GHANSHYAM RAJU
1) Straight Earnings = No. of units = 82 x 0.5
piece x piece rate per unit =41 rs
basis = 60 x 0.5 = 30 rs

2) Taylor’s Below standard Above standard

diff piece =80% x No. of units x = 120% x 82 x 0.5
rate piece rate per unit = 49.2 rs
system = 80% x 60 x 0.5 = 30.8
rs
Q5
The three workers Nakul, Suresh and Kiran produced 80, 100 and 120 Pieces of
a product X on a particular day in May 2018 in a factory. Nakul worked for 9
hours, while Kiran and Suresh worked for 10 hours on that particular day. The
time allowed for 10 units of Product X is 1 hour and their hourly rate is ₹4.
Calculate for each Earnings for the day for all the three workers by all 3
methods.
Particulars Nakul Suresh Kiran
Production (units) 80 units 100 units 120 units
Time allowed 8 10 12
(hours @ 10
pieces per hour)
Piece rate (4/10) 0.4 0.4 0.4
Time taken 9 hours 10 hours 10 hours

Particulars Nakul Suresh Kiran

1) Time rate = Time taken x = 10 x 0.4 = 4 10 x 0.4 = 4
system rate per hour
= 9 x 0.4 = 3.6
2) Straight piece Earnings = No. of = 100 X 0.4 = 120 X 0.4
rate system units x piece rate = 40 = 48
per unit
= 80 X 0.4 = 32

Below standard
=80% x No. of
units x piece rate
per unit

Q6
In a factory 20 workers are employed in the production of product X. From the
following particulars compute the wage bill for the workers for the month of
August
2019:
a) Basic pay: ₹ 3500 per month per worker
b) Dearness Allowance: 12% of basic salary
c) Employer's contribution to Provident Fund: 10% of Basic Wages
d) Employer's contribution to ESI: 3.25 % of Basic Wages
e) Other Allowances: ₹200 per month per worker
f) Professional Tax deducted from salary: 200 per month per worker.
ANS
Statement showing the Gross wages and Net wages (Wage bill)
PARTICULARS AMOUNT (RS)
(+) add basic wages (3500x20) 70000
Dearness allowance 8400
(12% of 70000)
Other allowances 4000
(200 x 20)

GROSS TOTAL 82400

WAGES

(-) less Professional tax 4000

(200 x 20)

NET TOTAL WAGES 78400

Note: Employer’s contribution to P.F. and E.S.I. are not included in the wage
bill of the workers.