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$)$:

$\backslash$table$[[$Activity$,$Activity Driver,SQ$,$AQ$,$SP$],[$Purchasing$,$Purchasing hours,$28,000,34,000,$$$20$