Question

A product currently requires 6 moves. By changing the plant layout, the number of moves can...

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

0 0
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Answer #1

A product currently requires = 6 moves.

moves can be reduced to = 2

The cost per move is   = $40

6 moves - reduced 2= 4

The cost per move is = $40*4 = 160$

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