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Nonvalue Added Costs Lemmons Inc. has the following two activities: (1) Retesting reworked products, cost: $477,000. The retesting cost of the most efficient competitor is

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Nonvalue Added Costs Lemmons Inc. has the following two activities: (1) Retesting reworked products, cost: $477,000. The retesting cost of the most efficient competitor is $225,000. (2) Welding subassemblies, cost: $1,282,500 (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 $1,026,000. Required: Determine the nonvalue-added cost of each activity. Retesting Welding Nonvalue-added cost

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