Brief Exercise 5-35. Nonvalue-Added Costs Objective 4 Example 5.7 Evans Inc. has the following two activities: (1) Reworking products, cost: $740,000. The reworking cost of the most efficient similar- sized competitor is $200,000. (2) Purchasing parts, cost: $900,000 (45,000 purchasing hours). A benchmarking study reveals that the most efficient level for Evans would use 24,000 purchasing hours and entail a cost of $450,000. Required: Determine the nonvalue-added cost of each activity. Brief Exercise 5-36. Velocity and Cycle Time Objective 4 Example 5.8 4 Tara Company takes 8,000 hours to produce 40,000 units of a product. Required: What is the velocity? Cycle time?