Question

29.30

Schedule of Activity Costs

Quality Control Activities	Activity Cost
Process audits	$49,300
Training of machine operators	28,100
Processing returned products	17,900
Scrap processing (disposal)	26,200
Rework	8,700
Preventative maintenance	27,900
Product design	40,100
Warranty work	7,900
Finished goods inspection	22,700

From the above schedule of activity costs, determine the prevention costs.

a.$96,100

b.$56,000

c.$114,000

d.$104,800

--------------

Schedule of Activity Costs

Quality Control Activities	Activity Cost
Process audits	$49,400
Training of machine operators	25,400
Processing returned products	18,400
Scrap processing (disposal)	24,100
Rework	7,900
Preventative maintenance	29,500
Product design	42,200
Warranty work	7,600
Finished goods inspection	22,900

From the above schedule of activity costs, determine the value-added costs.

a.$169,400

b.$227,400

c.$146,500

d.$177,000

Answer 1

1

Option A)

Value-added costs. =$96100

Working notes for the above answer is as under

Training Of Machine Operators	28100
Preventive Maintenances	27900
Product Design	40100
the prevention costs	96100

____________________________________________________________________

2

Option A)

the prevention costs =$169,400

Working notes for the above answer is as under

	Activity Cost
Process audits	49400
Training of machine operators	25400
Preventative maintenance	29500
Product design	42200
Finished goods inspection	22900
value added costs	169400