The finishing shop of a company employs 60 direct workers. Each worker is paid Rs. 400 as wages per weak of 40 hours. When necessary, overtime is worked upto a maximum of 15 hours per weak per worker at time rate plus one-half as premium. The current output on an average is 6 units per man hour which may be regarded as standard output. If bonus scheme is introduced, it is expected that the output will increase to 8 units per man hour. The workers will, if necessary, continue to work overtime upto the specified limit although no premium on incentives will be paid.

The company is considering introduction of either Halsey Scheme or Rowan Scheme of Wage Incentive system. The budgeted weekly output is 19,200 units. The selling price is Rs. 11 per unit and the direct material cost is Rs. 8 per unit. The variable overheads amount to Re. 0.50 per direct labour hour and the fixed overhead is Rs. 9,000 per week.

Prepare a statement to show the effect on the company's weekly profit of the proposal to introduce

(a) Halsey Scheme and

(b) Rowan Scheme.