Multiple Choice
Inspection time for a plant is 10,000 hours per year. The cost of inspection consists of salaries of four inspectors, totaling $60,000. Inspection also used supplies costing $3 per inspection hour. The company has a close to zero defect state and has eliminated the need for any inspection activity. Calculate the nonvalue-added cost of inspection per year.
A) $30,000
B) $60,000
C) $90,000
D) $120,000
Correct Answer:
Verified
Correct Answer:
Verified
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