The operating income, value added cost and total non value added cost. Given information: 2013, Cost of checking calculations and drawings is $11,700. Cost of correcting errors found in drawings is $31,200. Cost of correcting own errors regarding building codes is $27,300. Cost of travel is $15,000.

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Answer 1

Question

Chapter 13, Problem 13.17E

1.

To determine

To compute: The operating income, value added cost and total non value added cost.

Given information:

2013,

Cost of checking calculations and drawings is $11,700.

Cost of correcting errors found in drawings is $31,200.

Cost of correcting own errors regarding building codes is $27,300.

Cost of travel is $15,000.

2.

To determine

To explain: The consequences of misclassifying a non value added cost as a value added cost.

3.

To determine

To compute: The operating income after eliminating spending time to correct errors for the year 2013.

4.

To determine

To compute: The total number of hours.

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Answer 2

Question

Chapter 13, Problem 13.17E

1.

To determine

To compute: The operating income, value added cost and total non value added cost.

Given information:

2013,

Cost of checking calculations and drawings is $11,700.

Cost of correcting errors found in drawings is $31,200.

Cost of correcting own errors regarding building codes is $27,300.

Cost of travel is $15,000.

2.

To determine

To explain: The consequences of misclassifying a non value added cost as a value added cost.

3.

To determine

To compute: The operating income after eliminating spending time to correct errors for the year 2013.

4.

To determine

To compute: The total number of hours.

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Answer 3

Question

Chapter 13, Problem 13.17E

1.

To determine

To compute: The operating income, value added cost and total non value added cost.

Given information:

2013,

Cost of checking calculations and drawings is $11,700.

Cost of correcting errors found in drawings is $31,200.

Cost of correcting own errors regarding building codes is $27,300.

Cost of travel is $15,000.

2.

To determine

To explain: The consequences of misclassifying a non value added cost as a value added cost.

3.

To determine

To compute: The operating income after eliminating spending time to correct errors for the year 2013.

4.

To determine

To compute: The total number of hours.

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Answer 4

Question

Chapter 13, Problem 13.17E

1.

To determine

To compute: The operating income, value added cost and total non value added cost.

Given information:

2013,

Cost of checking calculations and drawings is $11,700.

Cost of correcting errors found in drawings is $31,200.

Cost of correcting own errors regarding building codes is $27,300.

Cost of travel is $15,000.

2.

To determine

To explain: The consequences of misclassifying a non value added cost as a value added cost.

3.

To determine

To compute: The operating income after eliminating spending time to correct errors for the year 2013.

4.

To determine

To compute: The total number of hours.

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Answer 5

Chapter 13, Problem 13.17E

1.

To determine

To compute: The operating income, value added cost and total non value added cost.

Given information:

2013,

Cost of checking calculations and drawings is $11,700.

Cost of correcting errors found in drawings is $31,200.

Cost of correcting own errors regarding building codes is $27,300.

Cost of travel is $15,000.

2.

To determine

To explain: The consequences of misclassifying a non value added cost as a value added cost.

3.

To determine

To compute: The operating income after eliminating spending time to correct errors for the year 2013.

4.

To determine

To compute: The total number of hours.

Answer 6

Chapter 13, Problem 13.17E

1.

To determine

To compute: The operating income, value added cost and total non value added cost.

Given information:

2013,

Cost of checking calculations and drawings is $11,700.

Cost of correcting errors found in drawings is $31,200.

Cost of correcting own errors regarding building codes is $27,300.

Cost of travel is $15,000.

Answer 7

Chapter 13, Problem 13.17E

1.

To determine

To compute: The operating income, value added cost and total non value added cost.

Given information:

2013,

Cost of checking calculations and drawings is $11,700.

Cost of correcting errors found in drawings is $31,200.

Cost of correcting own errors regarding building codes is $27,300.

Cost of travel is $15,000.

Answer 8

2.

To determine

To explain: The consequences of misclassifying a non value added cost as a value added cost.

Answer 9

2.

To determine

To explain: The consequences of misclassifying a non value added cost as a value added cost.

Answer 10

3.

To determine

To compute: The operating income after eliminating spending time to correct errors for the year 2013.

Answer 11

3.

To determine

To compute: The operating income after eliminating spending time to correct errors for the year 2013.

Answer 12

4.

To determine

To compute: The total number of hours.

Answer 13

4.

To determine

To compute: The total number of hours.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 13 - What are the three major influences on pricing...Ch. 13 - Relevant costs for pricing decisions are full...Ch. 13 - Describe four purposes of cost allocation.Ch. 13 - How is activity-based costing useful for pricing...Ch. 13 - Describe two alternative approaches to long-run...Ch. 13 - What is a target cost per unit?Ch. 13 - Describe value engineering and its role in target...Ch. 13 - Give two examples of a value-added cost and two...Ch. 13 - It is not important for a company to distinguish...Ch. 13 - Prob. 13.10Q

To explain: The consequences of misclassifying a non value added cost as a value added cost.

To compute: The operating income after eliminating spending time to correct errors for the year 2013.

To compute: The total number of hours.

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Chapter 13 Solutions