A time-and-motion study revealed that it should take 2 hours to produce a product that currently takes 6 hours to produce.Labour is $8 per hour.What are the non-value-added costs?
A)$0
B)$16
C)$32
D)$48

Question

Quizplus · Accepted Answer

Non-value-added costs refer to expenses incurred during the production process that do not add value to the final product. Given that a time-and-motion study has revealed that it should take 2 hours to produce the product but currently takes 6 hours, the non-value-added costs would be the extra labor costs incurred during the 4 extra hours (6 hours-2 hours).

The labor cost is $8 per hour, so the non-value-added cost for 4 hours of extra labor would be:

$8/hour x 4 hours = $32

Therefore, the best choice is C, which represents the non-value-added costs of $32.

A Time-And-Motion Study Revealed That It Should Take 2 Hours