Determine the nonvalue-added cost of each given activity

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Reference no: EM13938968

NONVALUE-ADDED COSTS

Dykes, Inc. has the following two activities: (1) Retesting reworked products, cost: $160,000. The retesting cost of the most efficient competitor is $50,000. (2) Welding subassemblies, cost: $300,000 (15,000 welding hours). A benchmarking study reveals that the most efficient level for Dykes would use 12,000 welding hours and entail a cost of $180,000.

Determine the nonvalue-added cost of each activity.

Reference no: EM13938968

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Determine the nonvalue-added cost of each given activity : Dykes, Inc. has following two activities: Retesting reworked products, cost: $160,000. Determine nonvalue-added cost of each activity.

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