Schedule of Activity Costs Quality Control Activities Process audits Training of machine operators Processing returned products Scrap processing (disposal) Rework Preventative maintenance Product design Warranty work Finished goods inspection Activity Cost $50,400 29,900 17,900 24,400 7,200 30,200 42,700 6,500 22,800 From the above schedule of activity costs, determine the value-added costs. O a. $232,000 Ob. $176,000 O c. $182,500 O d. $153,200

Schedule of Activity Costs Quality Control Activities Process audits Training of machine operators Processing returned products Scrap processing (disposal) Rework Preventative maintenance Product design Warranty work Finished goods inspection Activity Cost $50,400 29,900 17,900 24,400 7,200 30,200 42,700 6,500 22,800 From the above schedule of activity costs, determine the value-added costs. O a. $232,000 Ob. $176,000 O c. $182,500 O d. $153,200

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Activity-Based Environmental Cost Assignments Pinter Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs Design products (to reduce pollution) $ 129,600 Test for contamination 230,400 Treat toxic waste 720,000 Operate pollution control equipment 576,000 2. Driver data Solvent X Solvent Y Design hours 2,900 1,900 Testing hours 5,100 7,700 Pounds of waste 600 15,400 Machine hours 2,900 61,100 3. Other production data Solvent X Solvent Y Nonenvironmental production costs $2,176,000 $4,128,000 Units produced 320,000 320,000 4. Activity rates that will be used to assign environmental costs to products. Design Produts 27 per design hour Testing 18 per test hour Treating waste 45 per pound of waste Operating equipment 9 per machine hour 1. Determine the unit…
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Activity-Based Environmental Cost Assignments Pinter Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs Design products (to reduce pollution) $ 129,600 Test for contamination 230,400 Treat toxic waste 720,000 Operate pollution control equipment 576,000 2. Driver data Solvent X Solvent Y Design hours 2,900 1,900 Testing hours 5,100 7,700 Pounds of waste 600 15,400 Machine hours 2,900 61,100 3. Other production data Solvent X Solvent Y Nonenvironmental production costs $2,176,000 $4,128,000 Units produced 320,000 320,000 What if the design costs increased to $219,600 and the cost of toxic waste decreased to $360,000? Assume that Solvent Y uses 3,800 out of 7,600 design hours. Also assume that waste is cut by 50 percent and that Solvent Y is responsible for…
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puestion 5.4 Stark and Company's has the following cost data: Systems development Final product testing and inspection Quality data gathering, analysis, and reporting Net cost of scrap Customer returns arising from quality problems Amortization of testing equipment $29,000 $12,000 $9,000 $58,000 $56,000 553,000 $16,000 $38,000 $33,000 Rework labour and overhead Testing and inspection of incoming materials Product recalls Submission Instructions: 1. Determine the total prevention costs? 2. Determine total appraisal costs? 3. Determine the total internal failure costs?
Schedule of Activity Costs Quality Control Activities Product testing Assessing vendor quality Recalls Rework Scrap disposal Product design Training machine operators Warranty work Process audits Activity Cost $55,000 26,000 18,000 29,000 8,000 30,000 46,000 12,000 22,000 From the provided schedule of activity costs, determine the internal failure costs.
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