Refer to 14-6. Suppose that Lemmons Company used an activity analysis program during 2001 in an effort
Question:
Refer to 14-6. Suppose that Lemmons Company used an activity analysis program during 2001 in an effort to reduce nonvalue-added costs. The value-added standards, actual quan¬
tities, and prices for 2001 follow:
Required:
1. Prepare a report that compares the nonvalue-added costs for 2000 with those of 2001.
2. Comment on the value of a trend report.
Transcribed Image Text:
Activities Purchasing parts Assembling parts Inspecting parts Activity Driver SQ AQ SP Orders 500 600 $300 Labor hours 60,000 62,000 12 Administering parts Number of parts 6,000 8,000 110 Inspection hours 0 15,000 15
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Related Book For
Cost Management Accounting And Control
ISBN: 9780324002324
3rd Edition
Authors: Don R. Hansen, Maryanne M. Mowen
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