Question
Cost Report, Value-Added and Non-Value-Added Costs Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving parts, moving parts, and setting up equipment.
Cost Report, Value-Added and Non-Value-Added Costs
Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving parts, moving parts, and setting up equipment. The activities, the activity drivers, the standard and actual quantities, and the price standards for 20x1 are as follows:
Activities | Activity Driver | SQ | AQ | SP |
Purchasing parts | Purchase orders | 3,200 | 4,910 | $235 |
Receiving parts | Receiving orders | 6,400 | 9,300 | 145 |
Moving parts | Number of moves | 0 | 3,400 | 100 |
Setting up equipment | Setup hours | 0 | 7,500 | 275 |
The actual prices paid per unit of each activity driver were equal to the standard prices.
Required:
Question Content Area
1. 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".
Value-Added | Non-Value-Added | Actual | |
Purchasing parts | $fill in the blank b51348fcf00e066_1 | $fill in the blank b51348fcf00e066_2 | fill in the blank b51348fcf00e066_3 |
Receiving parts | fill in the blank b51348fcf00e066_4 | fill in the blank b51348fcf00e066_5 | fill in the blank b51348fcf00e066_6 |
Moving parts | fill in the blank b51348fcf00e066_7 | fill in the blank b51348fcf00e066_8 | fill in the blank b51348fcf00e066_9 |
Setting up equipment | fill in the blank b51348fcf00e066_10 | fill in the blank b51348fcf00e066_11 | fill in the blank b51348fcf00e066_12 |
Total | $fill in the blank b51348fcf00e066_13 | $fill in the blank b51348fcf00e066_14 | $fill in the blank b51348fcf00e066_15 |
Question Content Area
2. Which activities are non-value-added?
Moving parts and Setting up equipmentPurchasing partsReceiving parts
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