During a recent accounting period, ABC Co.'s shipping department processed 26 orders. Each order typically takes four hours to complete; however, the average time increased to five hours because of various departmental inefficiencies. If shipping labor is paid P14 per hour, the company's non-value-added cost would be Your answer Inspection time for a plant is 10,000 hours per year. The cost of inspection consists of salaries of four inspectors, totaling P60,000. Inspection also used supplies costing P3 per inspection hour. The company has a close to zero defect state and has eliminated the need for any inspection activity. Calculate the nonvalue-added cost of inspection per year.

During a recent accounting period, ABC Co.'s shipping department processed 26 orders. Each order typically takes four hours to complete; however, the average time increased to five hours because of various departmental inefficiencies. If shipping labor is paid P14 per hour, the company's non-value-added cost would be Your answer Inspection time for a plant is 10,000 hours per year. The cost of inspection consists of salaries of four inspectors, totaling P60,000. Inspection also used supplies costing P3 per inspection hour. The company has a close to zero defect state and has eliminated the need for any inspection activity. Calculate the nonvalue-added cost of inspection per year.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 10P

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