The companys non-value-added cost would be

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Reference no: EM131295076

1. Alaina's customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 18,900 calls and incurred costs of $565,110. Of these calls, 4,230 were for the company's wholesale operation; the remainder were for the retail division. Costs allocated to the wholesale operation under activity-based costing system should amount to: $0. $565,110. $126,477. $438,633. $448,193.

2. During a recent accounting period, Marty's shipping department processed 26 orders. Each order typically takes four hours to complete. However, the average time increased to five hours because of various departmental inefficiencies. If shipping labor is paid $14 per hour, the company's non-value-added cost would be:

$0.

$56.

$364.

$1,456.

$1,820.

Reference no: EM131295076

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