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 value-added costs?
A)$8
B)$16
C)$32
D)$48

Question

Quizplus · Accepted Answer

The value-added costs are calculated based on the time it should take to produce the product, which is 2 hours, at the labor cost of $8 per hour. Therefore, 2 hours * $8/hour = $16.

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