Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

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 2012 (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/ 12000/ 18000/ $21

assembly/ labor hours/ 75000/ 90000/ 15

expediting/ orders expedited/ 0/ 6000/ 50

storing/ number of units/ 0/ 12000/ 7

1. prepare a cost report for the year ending 2012 that shows value-added costs, non-value-added costs, and total costs for each activity.

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

3. what if receiving cost is a step-fixed cost with each step being 1,500 orders whereas assembly cost is a variable cost? what is the implication for reducing the cost of waste for each activity?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Impact Of SOA On IT Auditing From Auditors Point Of View

Authors: Farida Chotkan

1st Edition

3843363048, 978-3843363044

More Books

Students also viewed these Accounting questions

Question

Why is a harvest goal so crucial for entrepreneurs and the economy?

Answered: 1 week ago