Nonvalue-Added Costs Lemmons Inc. has the following two activities: (1) Retesting reworked products, cost: $492,000. The retesting cost of the most efficient competitor is $225,000. (2) Welding subassemblies, cost: $877,500 (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 $702,000. Required:

Retesting Welding

Nonvalue-added cost $ $