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

Thayne Company has 23 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	11%
Resolving discrepancies among the three documents	70
Preparing checks for suppliers	6
Making journal entries and mailing checks	13
The average salary of a clerk is $43,400.

Required:

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

Comparing documents
Resolving discrepancies
Preparing checks
Mailing checks