One of the production departments in A Ltd's factory employs 52 direct operatives and 9 indirect operatives. Basic hourly rates of pay are A.80 and $3.90 respectivey. hrenara paid at a premium ofan egularly to meet general productin requirements, is Prepara Questio vertime, which is work he following further information is provided for the period just ended: Hours worked: Direct operatives: wages c account evaluati impact o propose piecewO Total hours worked Overtime hours worked 25 520 houns 2 120 houns Indirect operatives: Total hours worked Overtime hours worked 4 430 hours 380 hours Production: Product 1, 36 000 units in 7 200 hours Product 2, 116 000 units in 11 600 hours Product 3, 52 800 units in 4 400 hours Non-productive time: Wages paid (net of tax and employees' National Insurance): 2 320 hours Direct operatives Indirect operatives 697 955 13 859 The senior management of A Ltd are considering the introduction of piecework payment scheme into the factory. Following work study analysis, expected produc vities and proposed piecework rates for the direct operatives, in the productin department referred to above, have been determined as follows Productivity Piecework rate (output perhour)(per unity Product 1 Product 2 dProduct 3 6 units 12 .units 14.4 units 1.00 00.50 90.40 Non-productive time is expected to remain at 10% of productive time, and would be paid at 3.50 per hour. Requireds (a) Prepare the production department's wages control account for the period in A Ltd's integrated aacounting system. (gnore employers' National Insurance) (9 marks) b Examine the effect of the proposed piecework payment scheme on direct labour and overhead costs. (11 marks) Total 20 marks) ACCA Cost and Management Accounting 1 One of the production departments in A Ltd's factory employs 52 direct operatives and 9 indirect operatives. Basic hourly rates of pay are A.80 and $3.90 respectivey. hrenara paid at a premium ofan egularly to meet general productin requirements, is Prepara Questio vertime, which is work he following further information is provided for the period just ended: Hours worked: Direct operatives: wages c account evaluati impact o propose piecewO Total hours worked Overtime hours worked 25 520 houns 2 120 houns Indirect operatives: Total hours worked Overtime hours worked 4 430 hours 380 hours Production: Product 1, 36 000 units in 7 200 hours Product 2, 116 000 units in 11 600 hours Product 3, 52 800 units in 4 400 hours Non-productive time: Wages paid (net of tax and employees' National Insurance): 2 320 hours Direct operatives Indirect operatives 697 955 13 859 The senior management of A Ltd are considering the introduction of piecework payment scheme into the factory. Following work study analysis, expected produc vities and proposed piecework rates for the direct operatives, in the productin department referred to above, have been determined as follows Productivity Piecework rate (output perhour)(per unity Product 1 Product 2 dProduct 3 6 units 12 .units 14.4 units 1.00 00.50 90.40 Non-productive time is expected to remain at 10% of productive time, and would be paid at 3.50 per hour. Requireds (a) Prepare the production department's wages control account for the period in A Ltd's integrated aacounting system. (gnore employers' National Insurance) (9 marks) b Examine the effect of the proposed piecework payment scheme on direct labour and overhead costs. (11 marks) Total 20 marks) ACCA Cost and Management Accounting 1