Home / Questions / Evans Inc has the following two activities 1 Reworking products cost: $740000 The reworkin...
Evans Inc. has the following two activities: (1) Reworking products, cost: $740,000. The reworking cost of the most efficient similar-sized competitor is $200,000. (2) Purchasing parts, cost: $900,000 (45,000 purchasing hours). A benchmarking study reveals that the most efficient level for Evans would use 24,000 purchasing hours and entail a cost of $450,000. Required: Determine the nonvalue-added cost of each activity.
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