Schedule of Activity Costs From the above schedule of activity costs, determine the non-value-added costs.
A) $30,000
B) $50,000
C) $64,000
D) $85,000

Question

Schedule of Activity Costs  From the above schedule of activity costs, determine the non-value-added costs.
A) $30,000 
B) $50,000 
C) $64,000 
D) $85,000

Quizplus · Accepted Answer

The non-value-added costs are those costs that do not directly contribute to the production of a product or service. Looking at the schedule of activity costs, the following costs can be considered as non-value added:

- Setup costs for products not sold ($16,000)
- Idle time during setup ($6,000)
- Excess capacity costs ($24,000)
- Overtime premium ($18,000)

Adding up these costs gives us a total of $64,000, which is option C. Therefore, C is the best choice.

Schedule of Activity Costs from the Above Schedule of Activity