Schedule of Activity Costs

1. From the provided schedule of activity costs, determine the nonvalueadded costs.

2. From the provided schedule of activity costs, determine the prevention costs. On test

3 From the provided schedule of activity costs, determine the total activity cost.
a. 
$62,000 

b. 
$179,000 

c. 
$94,000 

d. 
$241,000 
Answer:  
1)  
Particulars  Amount (in $ ) 
Processing returned products  $ 19,000 
Scrap processing (disposal)  $ 25,000 
Rework  $ 8,000 
Warranty work  $ 12,000 
Nonvalueadded costs  $ 64,000 
Option (C ) is Correct  
2)  
Particulars  Amount (in $ ) 
Training Of Machine Operators  $ 28,000 
Preventive Maintanance  $ 30,000 
Product Design  $ 46,000 
Prevention costs  $ 104,000 
Option (d ) is Correct  
3)  
Particulars  Amount (in $ ) 
Process audits  $ 50,000 
Training of machine operators  $ 28,000 
Processing returned products  $ 19,000 
Scrap processing (disposal)  $ 25,000 
Rework  $ 8,000 
Preventive maintenance  $ 30,000 
Product design  $ 46,000 
Warranty work  $ 12,000 
Finished goods inspection  $ 23,000 
Total Activity Cost  $ 241,000 
Option (d ) is Correct 
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