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Question 3 Eastern Manufacturing Sdn Bhd (EMSB) is considering introducing a new incentive scheme based on Differential Piecework Scheme to replace the existing scheme of Hourly Rate Scheme. As the Cost Accountant, you are required to analyse both schemes. The company operates 5 days a week, from 8.00am to 5.00pm. Lunch time 1.00pm to 2.00pm is excluded from the normal working hours. Overtime is paid at time and one third. The following information relates to three workers from EMSB for the month of June 2021: Workers Sunny Ethan Owen Units produced 1,296 1,500 1,028 Rejected (units) 30 38 31 Time taken (hours) 48 40 50 Basic wage rate per hour (RM) 3.50 2.50 3.80 Rate per unit (RM) 0.45 0.53 0.62 . . Additional information: Normal time for each worker to finish their job is 40 hours. EMSB decided not to pay for the damaged units. Differential Piecework Scheme is as follow: 0 - 500 units : RM0.80 per unit 501 - 1,000 units : RM1.30 per unit 1,001 - 1,500 units : RM2.10 per unit 1,501 - and above : RM3.20 per unit Required: For each worker, calculate: a) The wages under the old scheme Hourly Rate Scheme; (b) The wages under the new scheme, Differential Piecework Scheme. Note: (a) Round your answers to TWO (2) decimal points (b) Show all your relevant working. (8.5 marks) (16.5 marks) (Total 25 marks)

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