Lemmons Inc. has the following two activities: (1) Retesting reworked products, cost: $456,000. The retesting cost of the most efficient competitor is $225,000. (2) Welding subassemblies, cost: $945,000 (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 $756,000. Required: Determine the nonvalue-added cost of each activity. Nonvalue-added cost: Feedback Retesting X Welding Check My Work Nonvalue-added costs are caused either by nonvalue-added activities or value-added activities performed inefficiently. D

cost of 5756,000 . Required: Determine the nonvalue.added cost of each activity restas rowarmon Nomblue added custs are caupd either by norvalve- added actives or value-added activies perfermed inelficeitey