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For situations provide the following information: a. An estimate of the non-value-added cost caused by each activity b. The root caused of the activity cost (such as plant layout, process design, and product design) c. The appropriate cost reduction measure: activity elimination, activity reduction, activity sharing, or activity selection 1. It takes 1 hour and six pounds of material to produce a product using a traditional manufacturing process. A process reengineering study provided a new manufacturing process design (using existing technology) that would take 30 minutes and four pounds of material. The cost per labor hour is $12, and the cost per pound of material is $10 2. With its original design, a product requires 10 hours of setup time. Redesigning the product could replace the setup time to an absolute minimum of 30 minutes. The cost per hour of setup time is $250.

For situations provide the following information: a. An estimate of the non-value-added cost caused by each activity b. The root caused of the activity cost (such as plant layout, process design, and product design) c. The appropriate cost reduction measure: activity elimination, activity reduction, activity sharing, or activity selection 1. It takes 1 hour and six pounds of material to produce a product using a traditional manufacturing process. A process reengineering study provided a new manufacturing process design (using existing technology) that would take 30 minutes and four pounds of material. The cost per labor hour is $12, and the cost per pound of material is $10 2. With its original design, a product requires 10 hours of setup time. Redesigning the product could replace the setup time to an absolute minimum of 30 minutes. The cost per hour of setup time is $250.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter14: Quality And Environmental Cost Management
Section: Chapter Questions
Problem 6CE: Pinter Company had the following environmental activities and product information: 1. Environmental...
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Soal #4 For situations a. An estimate of the non-value-added cost caused by each activity b. The root caused of the activity cost (such as plant layout, process design, and product design) c. The appropriate cost reduction measure: activity elimination, activity reduction, activity sharing, or activity selection provide the following information: 1. It takes 1 hour and six pounds of material to produce a product using a traditional manufacturing process. A process reengineering study provided a new manufacturing process design (using existing technology) that would take 30 minutes and four pounds of material. The cost per labor hour is $12, and the cost per pound of material is $10 2. With its original design, a product requires 10 hours of setup time. Redesigning the product could replace the setup time to an absolute minimum of 30 minutes. The cost per hour of setup time is $250.
Transcribed Image Text:Soal #4 For situations a. An estimate of the non-value-added cost caused by each activity b. The root caused of the activity cost (such as plant layout, process design, and product design) c. The appropriate cost reduction measure: activity elimination, activity reduction, activity sharing, or activity selection provide the following information: 1. It takes 1 hour and six pounds of material to produce a product using a traditional manufacturing process. A process reengineering study provided a new manufacturing process design (using existing technology) that would take 30 minutes and four pounds of material. The cost per labor hour is $12, and the cost per pound of material is $10 2. With its original design, a product requires 10 hours of setup time. Redesigning the product could replace the setup time to an absolute minimum of 30 minutes. The cost per hour of setup time is $250.
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