Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 2014 (actual price per unit of the activity driver is assumed to be equal to the standard price):

Activity	Activity Driver	SQ	AQ	SP
Receiving	Receiving orders	13,600	30,000	$24
Assembly	Labor hours	123,000	150,000	17
Expediting	Orders expedited	0	10,000	57
Storing	Number of units	0	20,000	8

Required:

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1. Prepare a cost report for the year ending 2014 that shows value-added costs, non-value-added costs, and total costs for each activity. If an amount is zero, enter "0".

Cicleta Manufacturing Value and Non-Value-Added Cost Report For the Year Ended 2014

Activity	Value-Added Costs	Non-Value-Added Costs	Total Costs
Receiving	$fill in the blank ffd7caf8e06c07a_1	$fill in the blank ffd7caf8e06c07a_2	$fill in the blank ffd7caf8e06c07a_3
Assembly	fill in the blank ffd7caf8e06c07a_4	fill in the blank ffd7caf8e06c07a_5	fill in the blank ffd7caf8e06c07a_6
Expediting	fill in the blank ffd7caf8e06c07a_7	fill in the blank ffd7caf8e06c07a_8	fill in the blank ffd7caf8e06c07a_9
Storing	fill in the blank ffd7caf8e06c07a_10	fill in the blank ffd7caf8e06c07a_11	fill in the blank ffd7caf8e06c07a_12
Total	$fill in the blank ffd7caf8e06c07a_13	$fill in the blank ffd7caf8e06c07a_14	$fill in the blank ffd7caf8e06c07a_15

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2. Explain why expediting products and storing goods are non-value-added activities.

Both are necessary activitiesBoth are unnecessary activitiesBoth result in a change of state for the product