Inspection time for a plant is 10,000 hours per year. The cost of inspection consists of salaries of four inspectors, totaling P60,000. Inspection also used supplies costing P3 per inspection hour. The company has a close to zero defect state and has eliminated the need for any inspection activity. Calculate the nonvalue-added cost of inspection per year. Your answer

Inspection time for a plant is 10,000 hours per year. The cost of inspection consists of salaries of four inspectors, totaling P60,000. Inspection also used supplies costing P3 per inspection hour. The company has a close to zero defect state and has eliminated the need for any inspection activity. Calculate the nonvalue-added cost of inspection per year. Your answer

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 19E: A company is spending 70,000 per year for inspecting, 60,000 per year for purchasing, and 56,000 per...

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Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.
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i need to find the average cost per unit? if : the machine to produce the units cost $400,000 the monthly operating and maintenance cost is: $1,000 cost of material and labour is: $60/unit defective unit at a cost: $60/unit nominal production of: 2,800 units/month nominal defect rate: 3% MARR is 10% compounded monthly period of time 5 years
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Q-Constructions has tasked you to investigate the number of construction projects per year for which the company would need to break-even and make a profit of $500,000 per year. The average price of a building contract is $700,000 per project. The following are the fixed and variable costs of Q-Constructions in Table 2: Description Cost Office Space 55,000 Professional Staff Salaries 205,000 Insurances 50,000 Machine Maintenance 80,000 Website Management 30,000 On-site workers’ salaries $120,000 per project Average Material Cost 60% of the project price per project Table 2: Associated Costs of Q-Constructions Use this information above to complete the requested analyses below. Calculate: The break-even number of projects needed by the company. The income made by the company at break-even. Calculate the new number of projects that need to be completed to maintain a profit of $500,000 per year.
Q-Constructions has tasked you to investigate the number of construction projects per year for which the company would need to break-even and make a profit of $500,000 per year. The average price of a building contract is $700,000 per project. The following are the fixed and variable costs of Q-Constructions in Table 2: Description Cost Office Space 55,000 Professional Staff Salaries 205,000 Insurances 50,000 Machine Maintenance 80,000 Website Management 30,000 On-site workers’ salaries $120,000 per project Average Material Cost 60% of the project price per project Table 2: Associated Costs of Q-Constructions Use this information above to complete the requested analyses below. Calculate: The break-even number of projects needed by the company. The income made by the company at break-even. Show all working out including the modelling and solution steps. Q-Constructions is interested in making a profit per year to ensure the…
Q-Constructions has tasked you to investigate the number of construction projects per year for which the company would need to break-even and make a profit of $500,000 per year. The average price of a building contract is $700,000 per project. The following are the fixed and variable costs of Q-Constructions in Table 2: Description Cost Office Space 55,000 Professional Staff Salaries 205,000 Insurances 50,000 Machine Maintenance 80,000 Website Management 30,000 On-site workers’ salaries $120,000 per project Average Material Cost 60% of the project price per project Table 2: Associated Costs of Q-Constructions Use this information above to complete the requested analyses below. Calculate: The break-even number of projects needed by the company. The income made by the company at break-even. Show all working out including the modelling and solution steps. Q-Constructions is interested in making a profit per year to ensure the…
Q-Constructions has tasked you to investigate the number of construction projects per year for which the company would need to break-even and make a profit of $500,000 per year. The average price of a building contract is $700,000 per project. The following are the fixed and variable costs of Q-Constructions in Table 2: Description Cost Office Space 55,000 Professional Staff Salaries 205,000 Insurances 50,000 Machine Maintenance 80,000 Website Management 30,000 On-site workers’ salaries $120,000 per project Average Material Cost 60% of the project price per project Table 2: Associated Costs of Q-Constructions Use this information above to complete the requested analyses below. A) Calculate: The break-even number of projects needed by the company. The income made by the company at break-even. Show all working out including the modelling and solution steps. B) Q-Constructions is interested in making a profit per year to ensure…
Q-Constructions has tasked you to investigate the number of construction projects per year for which the company would need to break-even and make a profit of $500,000 per year. The average price of a building contract is $700,000 per project. The following are the fixed and variable costs of Q-Constructions in Table 2: Description Cost Office Space 55,000 Professional Staff Salaries 205,000 Insurances 50,000 Machine Maintenance 80,000 Website Management 30,000 On-site workers’ salaries $120,000 per project Average Material Cost 60% of the project price per project Table 2: Associated Costs of Q-Constructions a. Q-Constructions workers’ have approached the building union and been informed they could be paid a higher salary and want their salaries to be determined based on a percentage of the project price. The company has reviewed their historical records on the number of projects per year and has made the decision to respect the…
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