For each activity,determine the amount of value-added and non-value-added costs.
a.The company keeps 7 days of materials inventory on hand to avoid shutdowns due to materials shortages.Carrying costs are $50,000 per day.
b.A time-and-motion study revealed that it should take 10 minutes to produce a product that now takes 50 minutes to produce.Labour is $18 per hour.
c.Warranty work costs the firm $500,000 per year.Warranty costs for the industry average $100,000 per year.

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The Answer of For each activity,determine the amount of value-added and non-value-added costs.
a.The company keeps 7 days of materials inventory on hand to avoid shutdowns due to materials shortages.Carrying costs are $50,000 per day.
b.A time-and-motion study revealed that it should take 10 minutes to produce a product that now takes 50 minutes to produce.Labour is $18 per hour.
c.Warranty work costs the firm $500,000 per year.Warranty costs for the industry average $100,000 per year.

For Each Activity,determine the Amount of Value-Added and Non-Value-Added Costs