One of the production departments in A Ltd's factory employs 52 direct operatives and 9 indirect operatives. Basic hourly rates of pay are £14.40 and £11.70 respectively. Overtime, which is worked regularly to meet general production requirements, is paid at a premium of 30 per cent over basic rate.
The following further information is provided for the period just ended:

The senior management of A Ltd is considering the introduction of a piecework payment scheme into the factory. Following work study analysis, expected productivities and proposed piecework rates for the direct operatives, in the production department referred to above, have been determined as follows:

Non-productive time is expected to remain at 10 per cent of productive time, and would be paid at £10.50 per hour.
Required:
(a) Prepare the production department's wages control account for the period in A Ltd's integrated accounting system. (Ignore employers' National Insurance.)
(b) Examine the effect of the proposed piecework payment scheme on direct labour and overhead costs.

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Hours worked: Direct operatives: Total hours worked Overtime hours worked 25 520 hours 2 120 hours Indirect operatives: Total hours worked Overtime hours worked 4 430 hours 380 hours Production: Product 1, 36000 units in 7 200 hours Product 2, 116000 units in 11600 hours Product 3, 52800 units in 4400 hours Non-productive time Wages paid (net of tax and employees 2 320 hours National Insurance): Direct operatives Indirect operatives £293865 £41 577 Productivity (output per hour) Piecework rate (per unit Product 1 Product 2 Product 3 66 units 12 units 14.4 units £3.00 £1.50 £1.20