Test Company recently completed a process value analysis on all activities in an effort to identify and eliminate nonvalue-added cost. The analysis revealed the following information for the painting activity.

Painting: It currently takes 1.9 hours to paint one unit of product. A time and motion study showed that if the process was redesigned, one unit of product could be painted in 1.6 hours. Painting cost is $22 per hour, and annual production averages 30,000 units of product.

Q1. Calculate the total actual cost currently incurred for the painting activity.

Note: Give your answer using dollar signs and commas but no decimal points (cents).

Example: $12,345

Q2. Calculate the total value-added cost for the painting activity.

Note: Give your answer using dollar signs and commas but no decimal points (cents).

Example: $12,345

Q3. Determine the total nonvalue-added cost for the painting activity.

Note: Give your answer using dollar signs and commas but no decimal points (cents).

Example: $12,345

Test Company produced 500 units during the most recent 10-hour shift.

Calculate the cycle time.

	a.	0.02 hours per unit
	b.	50 units per hour
	c.	50 hours per unit
	d.	0.02 unit per hour