Walton Inc. intends to expand its Punch Press Department with the purchase of three new presses from Presco Inc. Mechanical studies indicate that for the company's intended use, the output rate for one press should be 1,000 pieces per hour. The company has similar presses now in operation that average 600 pieces per hour. This average is derived from the individual outputs as shown in the table that follows.

The company's management also plans to institute a standard cost accounting system in the very near future. The company's engineers are supporting a standard based on 1,000 pieces per hour; the Accounting Department, a standard based on 750 pieces per hour; and the Punch Press Department supervisor, a standard based on 600 pieces per hour.
Required:
(1) Specify arguments that could be used by each proponent.
(2) Decide which alternative best reconciles the needs of cost control and employee motivation. Explain.

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Hourly Output (In Pieces) 750 750 600 500 550 450 Worker Allen, W Miller, Ga Salermo, J... Velasquez, E Total..31000 3,600 Average hourly output 600