Ch$.12$ Practice B

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Value$-$Added and Non$-$Value$-$Added Costs, Unused Capacity

For Situations $1$ through $6,$ provide the following information:

a$.$ An estimate of the non$-$value$-$added cost caused by each activity.

b$.$ The root causes of the activity cost $($such as plant layout, process design, and product design$).$

c$.$ The appropriate cost reduction measure: activity elimination, activity reduction, activity sharing, or activity selection.

Choose "Multiple" in the Root cause column, wherever there is more than one root cause. If required, round your answers to the nearest dollar. that would take $15$ minutes and four pounds of material. The cost per labor hour is $$12,$ and the cost per pound of material is $$8.$

$3.$ A product currently requires eight moves. By redesigning the manufacturing layout, the number of moves can be reduced from eight to zero. The cost per move is $$10.$ program, product redesign, and process redesign reduced the need for inspection by creating a zero$-$defect environment. increasing the quality of the purchased component, the average number of components can be reduced to five components per unit. The cost per component is $$600.$ $$900,000$ per year.

$\backslash$table$[[$Case$,$No$,$Ided Cost,Root Cause,Cost Reduction$],[1,,$per unit,$-,EE$