Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $50,400 Training of machine operators 26,300 Processing returned products 15,700 Scrap processing (disposal) 24,100 Rework 7,500 Preventative maintenance 28,800 Product design 44,900 Warranty work 9,400 Finished goods inspection 22,300 From the provided schedule of activity costs, determine the non-value-added costs. a.$114,500 b.$56,700 c.$229,400 d.$47,300
Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $50,400 Training of machine operators 26,300 Processing returned products 15,700 Scrap processing (disposal) 24,100 Rework 7,500 Preventative maintenance 28,800 Product design 44,900 Warranty work 9,400 Finished goods inspection 22,300 From the provided schedule of activity costs, determine the non-value-added costs. a.$114,500 b.$56,700 c.$229,400 d.$47,300
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter27: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 18E: Cost of quality and value-added/non-value-added reports for a service company A. Using the...
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Schedule of Activity Costs | |
Quality Control Activities | Activity Cost |
Process audits | $50,400 |
Training of machine operators | 26,300 |
Processing returned products | 15,700 |
Scrap processing (disposal) | 24,100 |
Rework | 7,500 |
Preventative maintenance | 28,800 |
Product design | 44,900 |
Warranty work | 9,400 |
Finished goods inspection | 22,300 |
From the provided schedule of activity costs, determine the non-value-added costs.
a.$114,500
b.$56,700
c.$229,400
d.$47,300
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