Apply the Concepts, Cost Reporting Medco Inc., a manufacturing firm, has four activities: purchasing materials, molding, inspecting molds, and grinding imperfect molds. Purchasing materials and molding are necessary activities; inspection and grinding are unnecessary. SQ provides the value-added quantity for each activity; AQ is the actual activity output. The following data pertain to the four activities for the year ending (actual price per unit of the activity driver is assumed to be equal to the standard price): Activity Activity Driver SQ Purchasing Purchasing hours 28,000 34,000 $20 Molding hours Inspecting Inspection hours 8,400 AQ SP Molding 12 42,000 47,600 0 15 Grinding Number of units 0 6,000 6 Required: 1. Prepare a cost report for the year 1 ended that shows value-added costs, non-value-added costs, and total costs for each activity by completing the following table: Value-and Non-Value Added Cost Report for the Year 1 Ended Value Added Costs Non-Value Added Costs Total Costs Activity Purchasing Molding Inspecting Grinding Total