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    Non-value added costs

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    I need some help with this question:

    During a recent accounting period, Mark's shipping department processed 19 orders. Each order typically takes 4 hours to complete; however the average time increased to 5 hours because of various departmental inefficiencies. If shipping labor is paid $15 per hour, the company's non-value added costs would be:

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    Solution Summary

    This provides the steps to calculate the non-value added costs

    $2.19

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