E4-1 Classifying Activities According to Level, Determining Value-Added or Non-value-Added [LO 4-2, 4-3, 4-8]

Lindwood Company manufactures coffee cups in several different sizes and has identified the following activities in its manufacturing process: Required: 1., 2., & 3. Classify each activity listed as facility, product, batch, or unit level, identify a cost driver for each activity listed and indicate whether each activity is value-added or non-value-added.

Activity	Level	Cost Driver	Value-Added/ Non- Value-Added
Storing inventory
Creating molds
Pouring plaster
Firing pots in kiln
Sanding and finishing
Painting
Performing quality control
Ordering materials
Delivering an order to a large customer such as Home Depot
Insuring the manufacturing facility
Reconfiguring machinery between batches