The administrator of elections for the city of Crossville has been asked to perform an activity analysis
Question:
Activities Activity Cost
Correcting errors identified by election commission..... $ 84,000
Correcting jams ...................... 66,000
Correcting scan errors .................. 33,000
Loading ................................. 15,000
Logging-in control codes (for later reconciliation) ...... 12,000
Program scanner .................... 21,000
Rerunning job due to scan reading errors ......... 18,000
Scanning ...................... 30,000
Verifying scan accuracy via reconciling totals ........ 12,000
Verifying scanner accuracy with test run .......... 9,000
Total ........................ $ 300,000
Instructions
1. Prepare a Pareto chart of the department activities.
2. Use the activity cost information to determine the percentages of total department costs that are prevention, appraisal, internal failure, external failure, and not costs of quality.
3. Determine the percentages of the total department costs that are value-and non-value-added.
4. Interpret the information.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial and Managerial Accounting
ISBN: 978-1285078571
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Question Posted: