Boysenberry Company Recorded the Following Activities in the Current Year

question 76

Essay

Boysenberry Company recorded the following activities in the current year. Determine the amount of value-added and non-value-added costs in each of the activities performed.
a.Boysenberry keeps 5 days of materials inventory on hand to avoid shutdowns due to materials shortages.Carrying costs are $18,000 per day.
b.A time-and-motion study revealed that it should take 15 minutes to produce a product that now takes 45 minutes to produce.Labor cost is $16 per hour.
c.Warranty work costs the firm $200,000 per year. Warranty costs for the industry average $50,000 per year.

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Definitions:

Brush Border

A microvillar structure that lines the intestine's absorptive cells, enhancing the surface area for digestion and absorption of nutrients.

Microvilli

Microscopic cellular membrane protrusions that increase the surface area for absorption, especially in the epithelial cells of the small intestine.

Surface Area

The total area that the surface of an object occupies, which is significant in processes such as absorption and evaporation.

Omega-3 Fatty Acids

Essential fatty acids found in various foods, including fish and flaxseeds, known for their anti-inflammatory properties and heart health benefits.