Value-added and non-value-added activity costs Pryor Company prepared the following factory overhead report from its general ledger:

Indirect labor $250,000 Fringe benefits 30,000 Supplies 70,000 Depreciation 50,000 Total $400,000 The management of Pryor Company was dissatisfied with this report and asked the controller to prepare an activity analysis of the same information. This activity analysis was as follows:

Processing sales orders $ 68,000 17%

Disposing of scrap 96,000 24 Expediting work orders 80,000 20 Producing parts 44,000 11 Resolving supplier quality problems 56,000 14 Reissuing corrected purchase orders 40,000 10 Expediting customer orders 16,000 4 Total $400,000 100%

Interpret the activity analysis by identifying value-added and non-value-added activity costs. How does the activity cost report differ from the general ledger report?

Lead time