In an effort to expand the usefulness of its activity-based costing system, Peter Catalano's Verde Vineyards decides to adopt activity-based management techniques (ABM). One of these ABM techniques is classifying its activities as either value-added or non-value-added. 1. 2. 3. 4. 5. 6. Culling and replanting: Dead or overcrowded vines are culled, and new vines are planted or relocated. (Each variety has a separate vineyard.) Tying: The posts and wires are reset, and vines are tied to the wires for the dormant season. Trimming: At the end of the harvest, the vines are cut and trimmed back in preparation for the next season. Spraying: The vines are sprayed with chemicals for protection against insects and fungi. Harvesting: The grapes are hand-picked, placed in carts, and transported to the crushers. Stemming and crushing: Cartfuls of bunches of grapes of each variety are separately loaded into machines, which remove stems and gently crush the grapes. Pressing and filtering: The crushed grapes are transferred to presses that mechanically remove the juices and filter out bulk and impurities. Fermentation: The grape juice, by variety, is fermented in either stainless-steel tanks or oak barrels. Aging: The wines are aged in either stainless-steel tanks or oak barrels for one to three years, depending on the variety. Bottling and corking: Bottles are machine-filled and corked. Labelling and boxing: Each bottle is labelled, as is each nine-bottle case, with the name of the vintner, vintage, and variety. Storing: Packaged and boxed bottles are stored awaiting shipment. Shipping: The wine is shipped to distributors and private retailers. 7. 8. 9. 10. 11. 12. 13. 14. Heating and air-conditioning of plant and offices. Maintenance of buildings and equipment: Printing, repairs, replacements, and general maintenance are performed in the off-season. 15. For each of Verde's 15 activity cost pools, classify each of the activities as either value-added or non-value-added. 1. Culling and replanting 2. Tying 3. Trimming 4. Spraying 5. Harvesting 6. Stemming and crushing 7. Pressing and filtering 8. Fermentation 9. Aging 9. Aging 10. Bottling and corking 11. Labelling and boxing 12. Storing 13. Shipping 14. Heating and air-conditioning of plant and offices 15. Maintenance of buildings and equipment