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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.

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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. Determine the nonvalue-added cost of each activity

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