Schedule of Activity Costs Quality Control Activities Activity Cost Product testing $55,000 Assessing vendor quality 26,000 Recalls 18,000 Rework 29,000 Scrap disposal 8,000 Product design 30,000 Training machine operators 46,000 Warranty work 12,000 Process audits 22,000 From the above schedule, calculate the (a) value-added and (b) non-value-added costs.
Schedule of Activity Costs Quality Control Activities Activity Cost Product testing $55,000 Assessing vendor quality 26,000 Recalls 18,000 Rework 29,000 Scrap disposal 8,000 Product design 30,000 Training machine operators 46,000 Warranty work 12,000 Process audits 22,000 From the above schedule, calculate the (a) value-added and (b) non-value-added costs.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Schedule of Activity Costs
|
Quality Control Activities |
Activity Cost |
|
Product testing |
$55,000 |
|
Assessing vendor quality |
26,000 |
|
Recalls |
18,000 |
|
Rework |
29,000 |
|
Scrap disposal |
8,000 |
|
Product design |
30,000 |
|
Training machine operators |
46,000 |
|
Warranty work |
12,000 |
|
Process audits |
22,000 |
From the above schedule, calculate the (a) value-added and (b) non-value-added costs.
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