Question

IS Weygandt, Managerial Accounting, 8e CALCULATOR PRINTER VERSION « BACK NEX 1.38 0.47 Lasso and Markowitz is a law firm that is initiating an activity-based costing system. Sam Lasso, the senior partner and strong supporter of ABC, has prepared the following list of activities performed by a typical attorney in a day at the firm. Classify each of the activities listed by Sam Lasso as value-added or non-value-added. Activities Hours Writing contracts and letters Non-value-added Attending staff meetings Value-added Taking depositions 0.95 Doing research 1.07 Traveling to/from court Contemplating legal strategy 0.99 Eating lunch 0.95 1.07 Litigating a case in court 2.27 Entertaining a prospective client 1.47 How much was value-added time? (Round answer to 2 decimal places, e.g. 2.13.) Value-added time How much was non-value-added time? (Round answer to 2 decimal places, e.g. 2.13.) hours Non-value-added hours

Answer 1

Activities	Hours
Writing contracts and letters	1.38	Value-added
Attending staff meetings	0.47	Non-value-added
Taking depositions	0.95	Value-added
Doing research	1.07	Non-value-added
Traveling to/from court	1.07	Non-value-added
Contemplating legal strategy	0.99	Value-added
Eating lunch	0.95	Non-value-added
Litigating a case in court	2.27	Value-added
Entertaining a prospective client	1.47	Non-value-added
Value – added time ( 1.38 + 0.95 + 0.99 +2.27)	5.59 Hours
Non - value – added time ( 0.47 + 1.07+1.07+0.95+1.47)	5.03 Hours