From the following list of costs for a kitchen manufacturer, determine the amount of value-added cost.

Moving component parts from warehouse to assembly line $ 5000

Assembling the kitchen cabinets $50 000

Moving materials to the factory oor because of stock-out $10 000

Assembling the microwave units $ 4000

Reworking faulty handles on doors $1000

Testing the operation of the microwave unit $ 2000

Select one:

A. $54 000

B. $58 000

C. $59 000

D. $57 000

2.

Richard's Division of Richard and Sons has the following data related to a particular period: Average invested capital $ 700 000 Imputed interest rate 10% Revenues $1 900 000 Variable costs $1 150 000 Fixed costs related solely to the division $ 673 000 Calculate the amount of residual income for the period. Select one: A. $680 000 B. $7000 C. $77 000 D. $70 000