Refer to Exercise 10-6. Suppose that Lemmons Company used an activity analysis program during 2001 in an effort to reduce nonvalue-added costs. The value-added standards, actual quantities, and prices for 2001 follow:

Activities Activity Driver SQ AQ SP.

Purchasing parts Orders 500 600 $300 Assembling parts Labor hours 60,000 62,000 12 Administering parts Number of parts 6,000 8,000 ng Inspecting parts Inspection hours 0 15,000 15 Required:

1. Prepare a cost trend report that compares the nonvalue-added costs for 2000 with those of 2001.

2. Comment on the value of a trend report. lop4