Schedule of Activity Costs
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1. From the provided schedule of activity costs, determine the non-value-added costs.
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2. From the provided schedule of activity costs, determine the prevention costs. On test
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3 From the provided schedule of activity costs, determine the total activity cost.
a. |
$62,000 |
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b. |
$179,000 |
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c. |
$94,000 |
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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 |
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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