A time-and-motion study revealed that it should take 3 hours to produce a product that currently takes 7 hours to produce. Labor is $9 per hour.
The non-value-added costs are
A)$56.
B)$24.
C)$36.
D)$0.

Question

Quizplus · Accepted Answer

The non-value-added costs are the costs associated with the time that is spent on activities that do not add value to the product. In this case, the non-value-added costs are the costs associated with the 4 hours that it takes to produce the product over the time that it should take. The non-value-added costs are therefore $9 per hour x 4 hours = $36.

A Time-And-Motion Study Revealed That It Should Take 3 Hours