During a recent accounting period, ABC Co.'s shipping department processed 26 orders. Each order typically takes four hours to complete; however, the average time increased to five hours because of various departmental inefficiencies. If shipping labor is paid P14 per hour, the company's non-value-added cost would be Your answer Inspection time for a plant is 10,000 hours per year. The cost of inspection consists of salaries of four inspectors, totaling P60,000. Inspection also used supplies costing P3 per inspection hour. The company has a close to zero defect state and has eliminated the need for any inspection activity. Calculate the nonvalue-added cost of inspection per year.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![Please show supporting calculations.
During a recent accounting period, ABC Co.'s shipping department processed 26
orders. Each order typically takes four hours to complete; however, the average
time increased to five hours because of various departmental inefficiencies. If
shipping labor is paid P14 per hour, the company's non-value-added cost would
be
Your answer
Inspection time for a plant is 10,000 hours per year. The cost of inspection
consists of salaries of four inspectors, totaling P60,000. Inspection also used
supplies costing P3 per inspection hour. The company has a close to zero defect
state and has eliminated the need for any inspection activity. Calculate the
nonvalue-added cost of inspection per year.
Your answer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F24b224fa-ce59-4edc-b61d-d63d9f9d42ae%2Fe2e1930c-8b6f-4891-b78b-ec751029e4d0%2Fs6g73e_processed.jpeg&w=3840&q=75)
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