7-21 Choosing Labor Standards (CMA) The Alton Company is going to expand its punch-press department. It is about to purchase three new punch presses from Equipment Manufacturers, Inc. Equipment Manufacturers' engineers report that their mechanical studies indicate that for Alton's intended use, the output rate for one press should be 1,000 pieces per hour. Alton has very simi- lar presses now in operation. At the present time, production from these presses: averages 600 pieces per hour. A study of the Alton experience shows the average is derived from the following individual outputs. WORKER L. Jones J. Green R. Smith H. Brown R. Alters DAILY OUTPUT 750 750 600 500 550 450 Total 3,600 600 G. Hoag Average Alton management also plans to institute a standard cost accounting sys- tem in the very near future. The company engineers are supporting a standard based upon 1,000 pieces per hour, the accounting department is arguing for 750 pieces per hour and the department foreman is arguing for 600 pieces per hour. 1. What arguments would each proponent be likely to use to support his case? 2. Which alternative best reconciles the needs of cost control and the motivation of improved performance? Explain why you made that choice.