I'm looking for a discussion on the ability of standard costing information to motivate employees, as well as the importance of standard cost figures to drive efficiency while being achievable.

Alpha company is concerned about rising labor costs in relationship to production. In response, Alpha is considering employing a standard costing system to implement better control over their labor costs. Information obtained from prior periods indicate that, on average, it takes an employee approximately 20 minutes to create 1 unit. So, each employee can create approximately 24 units per day (8 working hours per day * 3 units per hour). Given this information, Alpha's production team determines that 24 units per day per employee is a little aggressive. They determine that the more reasonable standard should be 30 minutes per unit, or 16 units per day. Alpha decides to inform employees of the more lax standard of 16 units per day per employee, but to track their ability to meet the more aggressive standard of 24 units per day per employee without informing the employees of this standard (NOTE: they have consistently met this standard in the past) without telling employees. The employee payrate is $10 per hour I After 4 months of operating under the dual standard costing approach, Alpha provides the following information: Units produced Direct Labor hours Month 1 25,000 10,000 Month 2 18,400 8,000 Month 3 24,000 12,000 Month 4 32,000 15,000 Variance 24/day standard Month $50,000 V Month 2 $56,000 U Month 3 Month 4 $120,000 0 $130,000 0 Variance 16/day standard $50,000 F $24,000 F $0 $20,000 F U = unfavorable F = Favorable Given the information that you have, along with the operating results for the 4 months subsequent to the implementation of the double standard costing approach, discuss your opinion (informed opinion) on which standard cost should be provided to the employee and why, How would you advise the company to proceed? Why would you take this position