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(solution) Dykes, Inc. has the following two activities: (1) Retesting rewo


Dykes, Inc. has the following two activities: (1) Retesting reworked products, cost: $160,000. The retesting cost of the most efficient competitor is $50,000. (2) Welding subassemblies, cost: $300,000 (15,000 welding hours). A benchmarking study reveals that the most efficient level for Dykes would use 12,000 welding hours and entail a cost of $180,000. Required: Determine the non-value-added cost of each activity.

 

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Sep 13, 2020

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