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eBook Show Me How Calculator Nonvalue-Added Costs Lemmons Inc. has the following two activities: (1) Retesting reworked products, cost: $720,000. The retesting cost of the

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eBook Show Me How Calculator Nonvalue-Added Costs Lemmons Inc. has the following two activities: (1) Retesting reworked products, cost: $720,000. The retesting cost of the most efficient competitor is $225,000. (2) Welding subassemblies, cost: $1,350,000 (67,500 welding hours). A benchmarking study reveals that the most efficient level for Lemmons would use 54,000 welding hours and entail a cost of $1,080,000. Required: Determine the nonvalue-added cost of each activity. Welding Retesting $ 480,000 x Nonvalue-added cost: Feedback Check My Work Nonvalue-added costs are caused either by nonvalue-added activities or value-added activities performed inefficiently

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