1.
a.
To explain: The classification cost as value added and non value added cost.
b.
To explain: The classification cost as value added and non value added cost.
c.
To explain: The classification cost as value added and non value added cost.
d.
To explain: The classification cost as value added and non value added cost.
e.
To explain: The classification cost as value added and non value added cost.
f.
To explain: The classification cost as value added and non value added cost.
g.
To explain: The classification cost as value added and non value added cost.
2.
To compute: The breakup of value added and non value added.
Given information:
2013,
Cost of material and labor for servicing machine tools is $1,100,000.
Cost of material procurement and inspection cost is $45,000.
Cost of preventive maintenance of equipment is $55,000
Rework cost is $90,000.
Expediting cost caused by work delays is $65,000.
Material handling cost is $80,000.
Breakdown maintenance of equipment is $75,000.
3.
To compute: The amount that is to be reduced after making changes in (a), (b), and (c).
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Chapter 13 Solutions
Cost Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText -- Access Card Package (15th Edition)
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