Honley Company has 20 clerks that work in its Accounts Payable Department. A study revealed the following activities and the relative time demanded by each activity:

Required:
Classify the four activities as value-added or non-value-added, and calculate the clerical cost of each activity. For non-value-added activities, indicate why they are non-value-added.LO1

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Activities Comparing purchase orders and receiving orders and invoices Resolving discrepancies among the three documents Preparing checks for suppliers Making journal entries and mailing checks The average salary of a clerk is $30,000. Percentage of Clerical Time 15% 70 10 5