Phalsa Ltd. pays its workers on time-basis because their services cannot be tangibly measured. The company's normal working week includes 5 days of…

Phalsa Ltd. pays its workers on time-basis because their services cannot be tangibly measured. The company's normal working week includes 5 days of 8 hours each. Sometimes, the workers needs to work late at night which was 3 nights of 3 hours each for the current week. The average output produced per worker for the week is 120 units. Information regarding incentive rate is as follows: Rate of Payment Day shift:320 per hour Night shift:450 per hour However, this time-basis payment made workers lazy, making their expected output lower. As workers started doing more of the night shifts for higher earnings with minimal impact on the outputs, the company decided to shift on to a system of payments on output basis. Information regarding amended incentive rate is as follows: Time-rate (as usual):320 per hour Basic time allowed for 15 units: 5 hours Piece-work rate: Add 15% to basic piece-rate In the amended incentive system, the normal weekly working hours remained the same while production increased to 135 units. CALCULATE the labour cost per unit as per the existing incentive system, along with the amended incentive system.