Setup Time for a Product Is 12 Hours

question 91

Multiple Choice

Setup time for a product is 12 hours. A firm that uses JIT and produces the same product has reduced setup time to 1 hour. Setup labour is $6 per hour.
-Refer to the figure.What are the non-value-added costs?

• A)$72
• B)$66
• C)$12
• D)$6

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Definitions:

Tax Rate

The percentage rate at which the government taxes an individual’s or corporation’s income.

Sliding Clutches

Sliding clutches are components in a transmission that allow for the engagement and disengagement of gears during the gear shifting process.

Twin-countershaft

A design feature in transmissions where two countershafts work in parallel to distribute the load and allow for more gear ratios, enhancing performance and durability.

Transmission Assembly

A collection of components that transmit power from a vehicle's engine to its wheels, enabling the vehicle to move.