Cost accounting question, accounting, Basic Statistics

LO.1 (Activity analysis) The Raleigh plant manager of Allentown Corp. has noticed
the plant frequently changes the schedule on its production line. He has gathered the
following information on the activities, estimated times, and average costs required for
a single schedule change.

Activity Est.Time Average Cost
Review impact of orders 30 min.–2 hrs. $ 300
Reschedule orders 15 min.–24 hrs. 800
Reschedule production orders 15 min.–1 hr. 75
Stop production and change over 10 min.–3 hrs. 150
Return and locate material (excess inventory) 20 min.–6 hrs. 1,500
Generate new production paperwork 15 min.–4 hrs. 500
Change purchasing schedule 10 min.–8 hrs. 2,100
Collect paperwork from the fl oor 15 min. 75
Review new line schedule 15 min.–30 min. 100
Overtime premiums 3 hrs.–10 hrs. 1,000
Total $6,600

a. Which of these, if any, are value-added activities?
b. What is the cost driver in this situation?
c. How can the cost driver be controlled and the NVA activities eliminated?
Posted Date: 2/8/2012 12:40:39 PM | Location : United States







Related Discussions:- Cost accounting question, accounting, Assignment Help, Ask Question on Cost accounting question, accounting, Get Answer, Expert's Help, Cost accounting question, accounting Discussions

Write discussion on Cost accounting question, accounting
Your posts are moderated
Related Questions
A machine is used for machining of a manufactured product. At the beginning of each business day inspection reveals the machine's condition. There are three possible states: 0, 1 a

So I can send you a word problem & you van send the answers back in excel for me?

The Washington Corp stock has a β of 1.15 and it will pay a dividend of $2.50 next year. The expected rate of return of the market is 17% and the current riskless rate is 9%. The e

CRSL has a large auditorium which can cater for 300 people and is ideal for formal balls and functions. The auditorium can also be reconfigured to cater for 100 people. The Seasons

How does skewness affect different areas of accounting?

Mode Mode, M is the value that has the largest number of occurrence or frequency in a data set, for instance, given the following data:  11 15 16 12 15 19 17 15 we can se

which one is better skewed or kurtic distributed data?

Dear expert, Assume that we have a multivariate unobserved component model (or SUTSE, seemingly unrelated time series equation model) in STATE SPACE form, that is: Y(t) = H A(t) +


What are the salient features of a Promissory Note? Ans. a) A Promissory Note is made by the promiser who undertakes to pay the mentioned amount of Bill to the bearer of the Promi