SE 8. Aromatherapy Products Company is in the process of adopting the just-intime operating environment for its
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SE 8. Aromatherapy Products Company is in the process of adopting the just-intime operating environment for its lotion-making operations. Indicate which of the following overhead costs are non-value-adding costs (NVA) and which can be traced directly to the new lotion-making work cell (D):
1. Storage containers for work in process inventory 2. Insurance on the storage warehouse 3. Machine electricity 4. Machine repairs 5. Depreciation of the storage container moving equipment 6. Machine setup labor Backflush Costing
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