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How much is the value added costs? Information: A manufaturing firm has four activities: purchasing materials, molding, inspecting molds, and grinding imperfect molds. Purchasing and
How much is the value added costs?
Information: A manufaturing firm has four activities: purchasing materials, molding, inspecting molds, and grinding imperfect molds. Purchasing and molding are necessary activities, while inspection and grinding are unnecessary. The following data pertain to the four activities for the year ending 20x1. Actual price per unit of the activity driver is assumed to be equal to the standard price. Activity Activity Driver SQ AQ SP Purchasing Purchasing hours 20,000 24,000 $20 Molding Molding hours 30,000 34,000 Inspecting Inspecting hours 0 6,000 15 Grinding Number of units 0 5,000 6 How much is the total value-added costs? 12Step by Step Solution
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