Question

Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $50,000 Training of machine operators...

Schedule of Activity Costs

Quality Control Activities

Activity Cost

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

1. From the provided schedule of activity costs, determine the non-value-added costs.

a.

$30,000

b.

$50,000

c.

$64,000

d.

$85,000

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

a.

$30,000

b.

$74,000

c.

$76,000

d.

$104,000

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

Homework Answers

Answer #1
Answer:
1)
Particulars Amount (in $ )
Processing returned products $ 19,000
Scrap processing (disposal) $ 25,000
Rework $ 8,000
Warranty work $ 12,000
Non-value-added 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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