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 | 2,500 | 3,580 | $145 |
Receiving parts | Receiving orders | 5,000 | 7,000 | 310 |
Moving parts | Number of moves | 0 | 1,500 | 375 |
Setting up equipment | Setup hours | 0 | 6,500 | 160 |
The actual prices paid per unit of each activity driver were equal to the standard prices.
Required:
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 e9b79fff601a028_1 | $fill in the blank e9b79fff601a028_2 | fill in the blank e9b79fff601a028_3 |
Receiving parts | fill in the blank e9b79fff601a028_4 | fill in the blank e9b79fff601a028_5 | fill in the blank e9b79fff601a028_6 |
Moving parts | fill in the blank e9b79fff601a028_7 | fill in the blank e9b79fff601a028_8 | fill in the blank e9b79fff601a028_9 |
Setting up equipment | fill in the blank e9b79fff601a028_10 | fill in the blank e9b79fff601a028_11 | fill in the blank e9b79fff601a028_12 |
Total | $fill in the blank e9b79fff601a028_13 | $fill in the blank e9b79fff601a028_14 | $fill in the blank e9b79fff601a028_15 |
2. Which activities are non-value-added?
Moving parts and Setting up equipmentPurchasing partsReceiving parts
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