Cost accounting question, accounting, Basic Statistics

Cost accounting question, accounting, Basic Statistics

Assignment Help:

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?

Related Discussions:- Cost accounting question, accounting

Find a p-value from a t-test, A random sample of 321 New Jersey and 77 Penn...

A random sample of 321 New Jersey and 77 Pennsylvania fast-food restaurants was selected from those fast-food restaurants in this study. The restaurants were categorised into two

Determine the variance, A gambling machines works in the following way. The...

A gambling machines works in the following way. The player inserts a penny into 1 of 5 slots which are colored Blue, Red, Orange, Yellow & Green corresponding to 5 colored light bu

Descriptive analysis , All Excel output should be copied into a single Word...

All Excel output should be copied into a single Word document where you must enter all of your responses to the questions below. Format the document professionally so it flows well

How long it takes a ball to fall to the bottom of a cone, A game that frien...

A game that friends and I try to play to guess how long it takes a ball to fall to the bottom of a cone and how many revolutions around the cone it will take. I do not have a lot

Calculate a confidence interval for the population, A Shoe manufacturing co...

A Shoe manufacturing company designs a new shoe (Brand A) and it wanted to compare its fit with that of the leading brands in the market Nike and Reebok. 27 Customers were asked to

Quantitative analysis in health science, Need Help

Need Help

What is the probability, Suppose the entire cola industry produces only two...

Suppose the entire cola industry produces only two colas viz., Pepsi and Coke. Given that a person last purchased Pepsi, there is 90% that his next purchase will be Pepsi. Given

Derive the pure strategy nash equilibrium, There are two firms competing in...

There are two firms competing in quantity. Firm 1 and 2 set their quantities supplied, q1 and q2, respectively. The production costs are zero. The market price is given by

Time series analysis, Limitation of time series analysis

Limitation of time series analysis

Ogive, how to draw less than ogive

how to draw less than ogive

Write Your Message!

Name

Email id

Message

Verfication Code

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd