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Question - From the following list of costs, determine the amount of non-value-added cost.
Moving component parts from warehouse to assembly line $5000
Assembling the kitchen cabinets $50,000
Moving materials to the factory floor because of stock-out $10,000
Assembling the microwave units $4000
Reworking faulty handles on doors $1000
Testing the operation of the microwave unit $2000
A. $17 000
B. $18 000
C. $16 000
D. $8000
Martin Company sells a certain product for $15 per unit. The beginning inventory is 40,000 units, and the desired ending inventory is 32,000 units. If budgeted production is 100,000 units, what is the forecasted sales revenue from the product?
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