Cost Report, Value$-$Added and Non$-$Value$-$Added Costs

The actual prices paid per unit of each activity driver were equal to the standard prices.

Required:

Prepare a cost report that lists the value$-$added, non$-$value$-$added, and actual costs for each activity. If an amount is zero, enter $"0".$

Sanford, Inc.

Value$-$ and Non$-$Value$-$Added Cost Report

For the Year Ended December $31,20$x$1$

Value$-$Added Non$-$Value$-$Added Actual

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Value$-$added costs $=SQ($Standard Quantity$)$ SP $($Standard Price$)$

Non$-$value$-$added costs $($Actual Quantity$)-SQ$

Which activities are non$-$value$-$added?

Moving parts and Setting up equipment $$

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Non$-$value$-$added activities are unnecessary and are not valued by internal or external customers.

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r Check My Work

Partially correct