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:

1. Total Value added cost
2. Total Non-Value added cost

Answer rating: 100% (QA)

To calculate the total valueadded cost and total nonvalueadded cost for Quertige Co in 2019 we need ... View the full answer