Nonvalue-added costsdykes inc has the following two, Ask an Expert

Accounting

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.

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91609845

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