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
Calculate Correlation coefficient for X and Y, Statistics Homework • Variable X x • Variable Y y • Calculate: • z-scores for all values in the variables • correlation coefficien

Q. How to Choose a Sample? The way a sample is chosen is extremely important in all statistical studies. This is because, ultimately, all the inferences will be based on the s

A. If CD players are able to use the LDD strategy better than pure chance then explain what happens to the signal reliability ration as a CD player detects more cautiously B. As

A girl named Alice fell asleep during a discussion about the difference quotient. She did not think it could possibly have anything to do with real life. While dreaming she saw

Q. Example of inference? Ans. Thirty students from a college were surveyed and classified according to two variables: (1) gender (M/F) and (2) major (liberal arts, busines

State the main reason because of which the differences between a Cash Book and Bank Passbook. Ans. The difference can be stated as follows a) Sometime cheque issued to party on t

The notes receivable were accepted from several customers. The notes were issued on Sept. 1,2011 and will be settled together with a 20% interest on May 31, 2011.

Problem 1 Statistics plays a vital role in almost every facet of human life. Statistics. Explain the applications of statistics in business and management. Defining Stati


A boat is heading across a river at a velocity of 25 mph. The river is flowing downstream at 10 mph. What is the actual velocity of the boat?