Schedule of Activity Costs Quality Control Activities Process audits Training of machine operators Processing returned products Scrap processing (disposal) Rework Preventative maintenance Product design Warranty work Finished goods inspection Activity Cost $50,400 29,900 17,900 24,400 7,200 30,200 42,700 6,500 22,800 From the above schedule of activity costs, determine the value-added costs. O a. $232,000 Ob. $176,000 O c. $182,500 O d. $153,200

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 10CE: Selected activities and other information are provided for Patterson Company for its most recent...
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Schedule of Activity Costs
Quality Control Activities
Process audits
Training of machine operators
Processing returned products
$50,400
29,900
17,900
24,400
7,200
30,200
42,700
6,500
22,800
From the above schedule of activity costs, determine the value-added costs.
O a. $232,000
O b. $176,000
Scrap processing (disposal)
Rework
Preventative maintenance
Product design
Warranty work
Finished goods inspection
O c. $182,500
Od. $153,200
Activity Cost
Transcribed Image Text:Schedule of Activity Costs Quality Control Activities Process audits Training of machine operators Processing returned products $50,400 29,900 17,900 24,400 7,200 30,200 42,700 6,500 22,800 From the above schedule of activity costs, determine the value-added costs. O a. $232,000 O b. $176,000 Scrap processing (disposal) Rework Preventative maintenance Product design Warranty work Finished goods inspection O c. $182,500 Od. $153,200 Activity Cost
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