Zurcher Company has developed value-added standards for four activities: purchasing parts, receiving parts, moving parts, and setting

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Zurcher Company has developed value-added standards for four activities: purchasing parts, receiving parts, moving parts, and setting up equipment. The activities, the activity drivers, the standard and actual quantities, and the price standards for 2006 are as follows:

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The actual prices paid per unit of each activity driver were equal to the standard prices.

Required:
1. Prepare a cost report that lists the value-added, non-value-added, and actual costs for each activity.
2. Which activities are non-value-added? Explain why. Also, explain why valueadded activities can have non-value-added costs.

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Related Book For  book-img-for-question

Cost Management Accounting And Control

ISBN: 9780324233100

5th Edition

Authors: Don R. Hansen, Maryanne M. Mowen

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