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

Ask an Expert

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

Write your message here..

Related Questions

What is Agency financial reporting system (afrs), What is Agency financial ... What is Agency financial reporting system (afrs) The state-wide sales system managed by the Workplace of Economical Control. AFRS is the condition of Washington''s established sa

Himself, how r yopu how r yopu

Increasing the magnetic field inside a coil, Someone tries to increase the ... Someone tries to increase the magnetic field inside a coil by adding more turns to the coil. Where should he add more turns: to the end of the coil (i.e., to make it longer) or to

Quantive technique, what are the component of the queue what are the component of the queue

MANOVA, 5. Perform a factorial MANOVA on the data. Before interpreting the ... 5. Perform a factorial MANOVA on the data. Before interpreting the multivariate results of the MANOVA, check outcomes that test other assumptions for this statistic: equality of co

Probability, #question An electronic assembly is subjected to a final funct... #question An electronic assembly is subjected to a final functional test. Suppose that defects occur at random in these assemblies, and that these defects occur according to a Pois

Simple data analysis&comparison, Progect Guid: PROJECT 1: SIMPLE DATA ANA... Progect Guid: PROJECT 1: SIMPLE DATA ANALYSIS & COMPARISON REPORT GUIDELINES This document contains general guidelines for the preparation of the Project Report I. Please note,

Characteristics of good average, ion #Minimum 100 words accepted# ion #Minimum 100 words accepted#

Historigram, what is historigram in statistics please give the problems and... what is historigram in statistics please give the problems and there solution in statistics as soon as possible

Air wedge experiment , describe the air wedge experiment to determine the t... describe the air wedge experiment to determine the thickness of a wire