Solution 1 Activity analysis The Raleigh plant manager of Allentown Corp has noticed the plant frequently changes the schedule on its production line He
Solution Activity analysis The Raleigh plant manager of Allentown Corp has noticed the plant frequently changes the schedule
Solution Activity analysis The Raleigh plant manager of Allentown Corp has noticed the
Raleigh plant manager of Allentown Corp has noticed the plant frequently changes the schedule on its production line He
Solution Activity analysis The Raleigh plant manager of Allentown Corp has
noticed the plant frequently changes the schedule on its production line He
Solution Activity analysis The Raleigh plant manager of Allentown
Solution Activity analysis The
(Solution) 1 (Activity analysis) The Raleigh plant manager of Allentown Corp. has noticed the plant frequently changes the schedule on its production line. He...

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cost accounting ch04 kinney and raiborn13. LO.1 (Activity analysis) The Raleigh plant manager of Allentown Corp. has noticed the plant frequently changes the schedule on its production line. He has gathered the following information on the activities, estimated times, and average costs required for single schedule change. Activity EST. TIME Average Cost Review impact of change on orders 30min-2hrs $300 Reschedule production orders 15min-24hrs 875 Stop production and change over to new process 10min-3hrs 150 Locate inventory produced under old process 20min-6hrs 1,500 Remanufacture old inventory to conform to new process 3hrs-20hrs 6,000 Generate new production paperwork 15min-4hrs 500 Change purchasing schedule 10min-8hrs 2,100 Collect paper work from the floor 5min-15min 75 Review new line schedule 15min-30min 100 Pay overtime premiums 3hrs-5hrs 1,000 Total costs required for a single schedule change $ 6,600. A. Which, if any, of these activities are value-added? B. What is the cost driver in this situation? C. How can the cost driver be controlled and the NVP activities eliminated? 14. LO.1 (Activity analysis; research) Go to a local department or grocery store. a. List five packaged items for which it is readily apparent that packaging is essential and, therefore, would be considered value-added. b. list five packaged items for which its is readily apparent that packaging is nonessential and therefore adds no value. c. For each item listed in (b), indicate why you think the item was packaged rather than left unpackaged. 15. LO.1 (Activity analysis ) The following activities are common at Pisana’s Department Store. Goods are received with barcodes attached that can be read by scanners but not by customers. 1. Attending trade shows to view new products 2. Reviewing supplier catalogs 3. Ordering merchandise 4. Waiting for shipments to be received 5. Inspecting goods for damage

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