Final answer:
To estimate the nonvalue-added cost, calculate the difference in labor cost and material cost for each situation and multiply by the relevant cost per unit or hour.
Step-by-step explanation:
In situation a, the nonvalue-added cost can be estimated by calculating the difference in labor cost and material cost between the manual and automated process. The nonvalue-added cost per unit would be ($12 per labor hour x 0.5 hour difference) + ($10 per pound of material x 0.5 pound difference).
In situation b, the nonvalue-added cost can be estimated by calculating the difference in setup time between the original design and the redesigned gear. The nonvalue-added cost per setup would be ($50 per setup hour x 8 hour difference).
In situation c, the nonvalue-added cost can be estimated by multiplying the reduction in moves (6 moves to 0 moves) by the cost per move ($20 per move).
In situation d, there is no specific information provided to estimate the nonvalue-added cost.