Nonvalue-Added Costs Lemmons Inc. has the following two activities: 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 L (1) Retesting reworked products, cost: $550,000. The r ing cost of the most efficient Required Determine the nonvalue-added cost of each activity Retesting Welding Nonvalue-added cost Check My work Nonvalue-added costs are caused either by nonvalue- added activities or value-added activities performed inefficienthy