Trend Report, Non-Value-Added Costs

Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving parts, moving parts, and setting up equipment. The activities, the activity drivers, the standard and actual quantities, and the price standards for 20x1 are as follows:

Activities	Activity Driver	SQ	AQ	SP
Purchasing parts	Purchase orders	2,600	3,640	$300
Receiving parts	Receiving orders	5,200	7,800	195
Moving parts	Number of moves	0	2,600	390
Setting up equipment	Setup hours	0	10,400	117

The actual prices paid per unit of each activity driver were equal to the standard prices.

Suppose that for 20x2, Sanford, Inc., has chosen suppliers that provide higher-quality parts and redesigned its plant layout to reduce material movement. Additionally, Sanford implemented a new setup procedure and provided training for its purchasing agents. As a consequence, less setup time is required and fewer purchasing mistakes are made. At the end of 20x2, the following information is provided.

Activities	Activity Driver	SQ	AQ	SP
Purchasing parts	Purchase orders	2,600	3,120	$300
Receiving parts	Receiving orders	5,200	6,500	195
Moving parts	Number of moves	0	840	395
Setting up equipment	Setup hours	0	2,600	117

Required:

Prepare a report that compares the non-value-added costs for 20x2 with those of 20x1. Enter all your answers as positive amounts.

Sanford, Inc. Non-Value-Added Cost Trend Report For the Year Ended December 31, 20x2

	20x1	20x2	Change
Purchasing parts	$fill in the blank 1	$fill in the blank 2	$fill in the blank 3
Receiving parts	fill in the blank 4	fill in the blank 5	fill in the blank 6
Moving parts	fill in the blank 7	fill in the blank 8	fill in the blank 9
Setting up equipment	fill in the blank 10	fill in the blank 11	fill in the blank 12
Total	$fill in the blank 13	$fill in the blank 14	$fill in the blank 15