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Atlas Smallgoods {Atlas} is a company that produces a range of smoked meat products. One of the company's highvolume selling products, Mettwurst, is currentlv facing

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Atlas Smallgoods {Atlas} is a company that produces a range of smoked meat products. One of the company's highvolume selling products, Mettwurst, is currentlv facing intense competition from its major rival, Continental Meats. Atlasr Mettwurst sells at $4.00 per 500g stick. Continental sells its Mettwurst for $2.90 per Snag stick. Jim Atlas, Atlas' majority owner, is not particularlv worried about the problem, believing that Continental Meats can't be making a prot at that price. But his wife, Jane {Atlas' Finance Manager], is concerned, believing that there may be something wrong with the way Atlas is calculating their overhead costs. Jane used activitv-based casting to produce the following schedule of overhead costs and activity drivers: Mettwurst: Schedule of Overhead Costs and Activity Drivers Kilograms minced mmmmm 1, 500 Unload Mincer Loads Load Mixer Loads Operate Mixer Loads Unload Mixer Loads Move to Packing Room Trolley.r Loads Move to Storage Trollev Loads u m Required: {14 marks in total] mus-www- Ui- 'U'I- [a] Calculate the total nonvalueadding cost incurred bv Atlas for its Mettwurst product. Show all workings. (4 marks] [Hint NW! Cost totol = $2,320] [bl For each nonvalue adding oost identied for part (a), explain why you identied it as non-valueadding {4 marks)

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