There are four employees in the welding department. Three employees are responsible for welding a rod...

 

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There are four employees in the welding department. Three employees are responsible for welding a rod to a cylindrical plate, creating a sub assembly used in the production of pistons. The fourth employee inspects the completed sub assembly and, if necessary, grinds and removes any unnecessary bumps (protuberances) so that the sub assembly becomes usable (which occurs in approximately one-third of the cases because of less than efficient welding). The welders are each paid a salary of $50,000. The fourth employee, who is responsible for inspecting and grinding, is paid a salary of $40,000. 1. Calculate the following: Value-added cost: Non-value-added cost: There are four employees in the welding department. Three employees are responsible for welding a rod to a cylindrical plate, creating a sub assembly used in the production of pistons. The fourth employee inspects the completed sub assembly and, if necessary, grinds and removes any unnecessary bumps (protuberances) so that the sub assembly becomes usable (which occurs in approximately one-third of the cases because of less than efficient welding). The welders are each paid a salary of $50,000. The fourth employee, who is responsible for inspecting and grinding, is paid a salary of $40,000. 1. Calculate the following: Value-added cost: Non-value-added cost:

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To calculate the valueadded cost and nonvalueadded cost we need to identify the activities that add ... View the full answer