Multiple Choice
Inspection time for a plant is 12,000 hours per year.The cost of inspection consists of salaries of four inspectors, totaling $65,000.Inspection also uses supplies costing $4 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) $113,000
D) $120,000
Correct Answer:
Verified
Correct Answer:
Verified
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