Non-Value-Added Activities: Non-Value-Added Cost

Thayne Company has 20 clerks that work in its Accounts Payable Department. A study revealed the following activities and the relative time demanded by each activity:

Activities	Percentage of Clerical Time
Comparing purchase orders and receiving orders and invoices	13%
Resolving discrepancies among the three documents	73
Preparing checks for suppliers	8
Making journal entries and mailing checks	6
The average salary of a clerk is $41,100.

Required:

Classify the four activities as value-added or non-value-added, and calculate the clerical cost of each activity.

Comparing documents	Non-value-added	$
Resolving discrepancies	Non-value-added	$
Preparing checks	Value-added	$
Mailing checks	Value-added	$