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Refer to the HR Reports in the Inquirer. Through past investments in recruiting and training Digby has obtained a productivity index of 109.4%. This means that Digby's labor costs would be increased by 9.4% if it did not have these productivity improvements. This is a competitive advantage that Digby can sustain or even widen further if its competitors have no HR initiatives. Now, refer to the Income Statement in Digby's Annual Report. How much did Digby's productivity improvements save it in direct labor costs (in thousands) last year

Answer :

temmydbrain

Answer:

$ 3,063.

Explanation:

Saving in labor cost last year = Labor cost during current year * Increase in labor cost during current year.

= 32584 * 9.4 %

= $ 3,063

Conclusion :- Option a). $ 3,063. (This amount of $ 3063 increase in labor costs during current year as compared to last year represents to saving in labor costs during the last year i.e., Labor costs were less / short by $ 3063 during the last year).

Kindly note that this solution was arrived at based on the information that is available to me.

The direct labor cost is the cost incurred over the labor or employees for producing the goods or providing the services. There is a direct relationship between the productivity and direct labor cost.

The saving amount of direct labor cost for improving the productivity is $3,063.

Computation:

Given:

Labor cost of current year =$32,584

Percentage increase in labor cost =9.4%

[tex]\begin{aligned}\rm{Saving in labor cost last year}& = \rm{Labor \;cost\; during\; current\; year}\times\\& \rm{Increase \;in \;labor \;cost \;during \;current \;year}\\&= \$32,584 \times9.4 \%\\&= \$ 3,063\end{aligned}[/tex]

Therefore, $3,063 is the in the direct labor cost as compared to the previous year. Thus, last year the labor cost was short by $3,063.

To know more about direct labor cost, refer to the link:

https://brainly.com/question/15860064

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