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

HYPOTHESIS TESTING, The fluctuations in the stock market induce some invest...

The fluctuations in the stock market induce some investors to sell and move their money into more stable investments. To determine the degree to which recent fluctuation affected o

Tandard deviation of the sample of juveniles, The National Marine Fisheries...

The National Marine Fisheries Services is part of the National Oceanic and Atmospheric Administration. NMFS's programs support the conservation and management of living marine reso

Differences between ifrs and gaap, While the differences between IFRS and G...

While the differences between IFRS and GAAP are reducing, there still are significant differences between the two. While the IFRS has been developed by the IASB (International A

Operation research, meaning,definition,scope,origin,advantages and limitati...

meaning,definition,scope,origin,advantages and limitation of operation research ?

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

Bond calculation, Calculate the original price of the bond. Bonds were issu...

Calculate the original price of the bond. Bonds were issued at $200,000 of x% ten-year term bond at an effective annual interest rate (market rate) of x%. The bonds pay interest se

reading and display data-affine relation, We start reading and display the...

We start reading and display the data: library (UsingR) data(galileo) g2=galileo$init.h-500 gl=galileo$h.d par(bg='cornsilk') plot(gl,g2,pch=20,col="red",cex=2,yl

Measures of dispersion (variation), Measures of Dispersion (Variation) ...

Measures of Dispersion (Variation) A measure of dispersion is to measure the spread among values of observations in a data set. There are three commonly used measures of disper

Write Your Message!

Captcha
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!

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