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	2,200	3,160	$240
Receiving parts	Receiving orders	4,400	6,900	245
Moving parts	Number of moves	0	1,600	260
Setting up equipment	Setup hours	0	8,700	310

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

Required:

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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".

Sanford, Inc. Value- and Non-Value-Added Cost Report For the Year Ended December 31, 20x1

blank	Value-Added	Non-Value-Added	Actual
Purchasing parts	$fill in the blank a9a47001607b04e_1	$fill in the blank a9a47001607b04e_2	fill in the blank a9a47001607b04e_3
Receiving parts	fill in the blank a9a47001607b04e_4	fill in the blank a9a47001607b04e_5	fill in the blank a9a47001607b04e_6
Moving parts	fill in the blank a9a47001607b04e_7	fill in the blank a9a47001607b04e_8	fill in the blank a9a47001607b04e_9
Setting up equipment	fill in the blank a9a47001607b04e_10	fill in the blank a9a47001607b04e_11	fill in the blank a9a47001607b04e_12
Total	$fill in the blank a9a47001607b04e_13	$fill in the blank a9a47001607b04e_14	$fill in the blank a9a47001607b04e_15

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2. Which activities are non-value-added?

Moving parts and Setting up equipmentPurchasing partsReceiving parts