Atlas Smallgoods (Atlas) produces a range of smoked meat products. Recently, one of the company's high- volume selling products, Mettwurst, has faced intense competition from its major rival, Continental Meats Atlas' Mettwurst sells at $4.00 per 500g stick. Continental sells its Mettwurst for $2.90 per 500g stick. Jim Atlas, Atlas' majority owner, is not particularly worried about the problem, believing that they can't be making a profit at that price. But his wife, Jane (Atlas' Finance Manager), is concerned, believing that there may be something wrong with the way their calculate their overhead costs Jane used activity-based costing produce the following schedule of overhead costs and activity drivers Mettwurst: Schedule of Overhead Costs and Activity Drivers Activity Activity Driver Annual Cost Inspect Meat Dispose Substandard Meat Materials Handling Load Mincer Operate Mincer Unload Mincer Load Mixer Operate Mixer Unload Mixer Move to Packing Room Move to Storage Total Inspections Kilograms disposed$ Barrow-Loads Machine-loads Kilograms minced Loads Loads Loads Loads Trolley Loads Trolley Loads 300 500 $2,040 $1,080 $1,500 840 $1,200 $2,400 960 400 500 $11,720 Required: (14 marks in total) (a) Calculate the total non-value-adding cost incurred by Atlas for its Mettwurst product. Show all (b) For each non-value adding cost identified for part (a) explain why you identified it as non-value-adding (c) Consider the non-value activity 'Dispose Substandard Meat'. workings. (4 marks) [Hint: NVA Cost total = $7,820! (4 marks). (a) Identify two possible root causes for this activity being carried out. Justify the root causes you (b) Identify one appropriate improvement that addresses one of the root causes you have identified have identified. (4 marks) in (i) above. Explain which root cause the improvement will address, and how it will address it. (2 marks)