Reference no: EM132664912
Quertige Co. presented these data about its activities during 2019:
a. Purchasing components, cost: $50,000 (500 purchase orders). A study reveals that the most efficient level would use 250 purchase orders and entail a cost of $27,500.
b. Inspection time is 10,000 hours, related salaries of 2 inspectors, totaled $120,000. Inspection also used supplies costing $2 per inspection hour.
c. Costs related to reworking the product, $30,000.
d. performing warranty work, cost: $60,000. The warranty cost of the most efficient competitor is $30,000.
REQUIRED:
Problem 1: Total Value added cost
Problem 2: Total Non-Value added cost
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