Q R 60 135 Product Standard time allowed Units produced by workers Total standard time per unit (in minutes) allowed to workers (in hours) B 12 21 252 720 18 36 648 2,430 30 46 25 1,380 750 2,280 750 3,150 (b) Determination of Bonus Payable under Rowan Scheme Workers Time (in hours) Wage rate Earnings Bonus Total earings per hour + bonus Taken Allowed Saved 38 260 22,280 82,280 40 12.5 NA 50 2,000 2,000 34 52.5 18.5 72 2,448 862.6 3,310.60 1 = (34/52.5) X 18.5 X 372 = 2862.60 P. 9.17 ZED Ltd is working by employing 50 skilled workers. It is considering the introduction of in- centive scheme-either Halsey scheme (with 50 per cent bonus) or Rowan scheme of wage payment for increasing the labour productivity to cope up the increasing demand for the product by 40 per cent. It is believed that proposed incentive scheme could bring about an average 20 per cent increase over the present earnings of the workers; it could act as sufficient incentive for them to produce more. Because of assurance, the increase in productivity has been observed as revealed by the figures for the month of April. 38 A B y38 24 Hourly rate of wages (guaranteed) 330 Average time for producing one unit by one worker at the previous performance (This may be taken as time allowed) 1.975 hours Number of working days in the month Number of working hours per day of each worker 8 Actual production during the month 6,120 units REQUIRED: (1) Calculate the effective rate of earnings under the Halsey scheme and the Rowan scheme. (ii) Calculate the savings to the ZED Ltd in terms of direct labour cost per piece. (iii) Advise ZED Ltd about the selection of the scheme to fulfill their assurance