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Schedule of Activity Costs

Quality Control Activities	Activity Cost
Process audits	$50,100
Training of machine operators	27,200
Processing returned products	20,300
Scrap processing (disposal)	24,200
Rework	5,900
Preventative maintenance	29,500
Product design	41,200
Warranty work	8,900
Finished goods inspection	23,600

From the above schedule of activity costs, determine the non-value-added costs.

a.$115,200

b.$230,900

c.$50,400

d.$59,300

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Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates only to one customer's lean cell for the coming year. Projected labor and overhead, $7,370,000; materials costs, $28 per unit. Planned production included 4,000 hours to produce 27,500 motor drives. Actual production for August was 1,600 units, and motor drives shipped amounted to 1,380 units. From the foregoing information, determine the budgeted cell conversion cost per unit.

a.$1,842.50

b.$268.00

c.$296.00

d.$240.00