Question
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
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 |
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| Creating molds |
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| Pouring plaster |
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| Firing pots in kiln |
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| Sanding and finishing |
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| Painting |
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| Performing quality control |
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| Ordering materials |
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| Delivering an order to a large customer such as Home Depot |
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| Insuring the manufacturing facility |
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| Reconfiguring machinery between batches |
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
