Value-Added Labor. Borodovsky Company produces air pumps in a small factory about 30 kilometers south of Moscow,

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Value-Added Labor. Borodovsky Company produces air pumps in a small factory about 30 kilometers south of Moscow, Russia. The company employs eleven


people with nine direct and two indirect laborers. The plant manager, Vladimir Oliker, describes the tasks of the nine direct workers as follows:

(a) Three fabricators who cut and grind metal parts from raw steel, aluminum, and brass.

(b) One parts inspector who examines and approves parts produced.

(c) One warehouse stocker who keeps parts in inventory and fills bins used by assembly workers.

(d) One molder who makes vinyl seals and plastic fittings by using an injection molder.

(e) Two assemblers who assemble parts into product.

(f) One product inspector who approves the final product.
\section*{Required:}
1. Categorize each of the nine workers as value-added or nonvalue-added workers.
2. Compute the value-added labor ratio.

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Managerial Accounting

ISBN: 9780538842822

9th Edition

Authors: Harold M. Sollenberger, Arnold Schneider, Lane K. Anderson

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