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Value Added and Non-Value Added Costs, Unused Capacity For Situations 1 through 6, provide the following...
Value Added and Non-Value Added Costs, Unused Capacity For Situations 1 through 6, provide the following information: a. An estimate of the non-value-added cost caused by each activity. If required, round your final answer to the nearest dollar. b. The root causes of the activity cost (such as plant layout, process design, and product design). c. The appropriate cost reduction measure: activity elimination, activity reduction, activity sharing, or activity selection. Choose "Multiple" in the Root cause column, wherever there is...
Calculation of Value-Added and Non-Value-Added Costs, Activity Volume and Unused Capacity Variances Maquina Company produces custom-made machine parts. Maquina recently has implemented an activity-based management (ABM) system with the objective of reducing costs. Maquina has begun analyzing each activity to determine ways to increase its efficiency. Setting up equipment was among the first group of activities to be carefully studied. The study revealed that setup hours was a good driver for the activity. During the last year, the company incurred...
Calculation of Value-Added and Non-Value-Added Costs, Activity Volume and Unused Capacity Variances Maquina Company produces custom-made machine parts. Maquina recently has implemented an activity-based management (ABM) system with the objective of reducing costs. Maquina has begun analyzing each activity to determine ways to increase its efficiency. Setting up equipment was among the first group of activities to be carefully studied. The study revealed that setup hours was a good driver for the activity. During the last year, the company incurred...
Calculation of Value-Added and Non-Value-Added Costs, Activity Volume and Unused Capacity Variances Maquina Company produces custom-made machine parts. Maquina recently has implemented an activity-based management (ABM) system with the objective of reducing costs. Maquina has begun analyzing each activity to determine ways to increase its efficiency. Setting up equipment was among the first group of activities to be carefully studied. The study revealed that setup hours was a good driver for the activity. During the last year, the company incurred...
1., Which of the following statements is(are) true about non value added activities? Non value added activities are often unnecessary and dispensable Non value added activities maybe necessary but are being performed in an inefficient and improvable manner Non value added activities can be eliminated without deterioration of product quality, performance or perceived value A, b, and c A and b 2. Which of the following is least likely to be classified as a facility level activity in an activity-based...
Calculation of Value-Added and Non-Value-Added Costs, Activity Volume and Unused Capacity Variances Maquina Company produces custom-made machine parts. Maquina recently has implemented an activity-based management (ABM) system with the objective of reducing costs. Maquina has begun analyzing each activity to determine ways to increase its efficiency. Setting up equipment was among the first group of activities to be carefully studied. The study revealed that setup hours was a good driver for the activity. During the last year, the company incurred...
Consider the following situations: (a) Three Hands Co. manufactures metal candleholders. Using a traditional manufacturing technique, Three Hands can produce a batch of five hundred White Gothic candleholders using 500 kg of alloy metal, 100 hours of labour time, and 3 hours of set-up time. After a re-engineering study Three Hands can now produce the same size batch of candleholders with only 300 kg of alloy metal, 60 hours of labour time, and 2 hours of set-up time. The labour...
A product currently requires 6 moves. By changing the plant layout, the number of moves can be reduced to 2. The cost per move is $40. Calculate the reduction in the nonvalue-added cost of the moving activity. a.$150 b.$30 c.$0 d.$7 e.$160
Pareto Chart and A report summarizing the costs, percent of total, and percent of sales by appraisal, prevention, internal failure, and external failure cost of quality categories.Cost of Quality Report for a Manufacturing Company The president of Mission Inc. has been concerned about the growth in costs over the last several years. The president asked the controller to perform an The study of employee effort and other business records to determine the cost of activities.activity analysis to gain a better...
Sound Tek Inc. manufactures electronic stereo equipment. The manufacturing process includes printed circuit (PC) board assembly, final assembly, testing, and shipping. In the PC boand assembly operation, a number。individuals are esponsible for assenting electronic components into pn te i ut boards. Each operator s es ons le r so den g e net erdg to a given set of instructions. Operators work on batches of s0 printed dircuit boards. Each board requires 4 minutes of board assembly time. After each...