working by employing 10 skilled workers. He is considering the introduction of some incentive scheme 5. Mr. A is either Halsey Scheme (with 50% bonus) or Rowan Scheme - of wage payment for increasing the labour productivity to cope with the increased demand for the product by 25%. He feels that if the proposed incentive scheme could bring about an average 20% increase over the present earnings of the workers, it could act as sufficient incentive for them to produce more and he has accordingly given this assurance to the workers. As a result of this assurance, the increase in productivity has been observed as revealed by the following figures for the current month: Hourly rate of wages (guaranteed) Rs. 2.00 Average time for producing 1 piece by one worker at the previous performance: 2 hours (This may be taken as time allowed) No. of working days in the month 25 No. of working hours per day for each worker Actual production during the month 1,250 units Required:1. Calculate effective rate of earnings per hour under Halsey Scheme and Rowan Scheme. 2. Calculate the savings to Mr. A in terms of direct labour cost per piece under the above schemes. 3. Advise Mr. A about the selection of the scheme to fulfil his assurance. 8