Cornerstone Exercise 12.1 (Algorithmic)
Value- and Non-Value-Added Cost Reporting
Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 2014 (actual price per unit of the activity driver is assumed to be equal to the standard price):
Activity | Activity Driver | SQ | AQ | SP |
Receiving | Receiving orders | 7,200 | 19,500 | $12 |
Assembly | Labor hours | 81,000 | 97,500 | 9 |
Expediting | Orders expedited | 0 | 6,500 | 29 |
Storing | Number of units | 0 | 13,000 | 4 |
Required:
1. Prepare a cost report for the year ending 2014 that shows value-added costs, non-value-added costs, and total costs for each activity. If an amount is zero, enter "0".
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non value added cost means it do not add value to your product .it even increases your cost without addind value
examplereworking defective products ,product inspections and quality controls are non value added costsoverproduction leads to higher storage cost it increases non value added cost
so in the above we have standard and actual so standard is enough for value added cost what we incurring additionally is non value added cost
Cornerstone Exercise 12.1 (Algorithmic) Value- and Non-Value-Added Cost Reporting Cicleta Manufacturing has four activities: receiving materials,...
Value- and Non-Value Added Cost Reporting Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 2014 (actual price per unit of the activity driver is assumed to be equal to the standard price): Activity Activity Driver SQ AQ SP Receiving Receiving orders 13,600 28,500 $24 Assembly Labor hours 117,000 142,500 1 7...
Value- and Non-Value-Added Cost Reporting Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Activity Activity Driver SQ AQ SP Receiving Receiving orders 12,000 18,000 $21 Assembly Labor hours 75,000 90,000 15 Expediting Orders...
Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary, The following data pertain to the four activities for the year ending 2014 (actual price per unit of the activity driver is assumed to be equal to the standard price): Activity Activity Driver SQ AQ SP Receiving Receiving orders 15,200 22,500 Labor hours 93,000 112.500 19 Assembly Expediting Storing Orders expedited 0 7,500 64 Number...
Trend Reporting for Non-Value Added Costs Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Activity Activity Driver SQAQ SP Receiving Receiving orders 10,400 22,500 $18 Assembly Labor hours 93,000 112,500 13 Expediting Orders...
AQ Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities, expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20xl (actual price per unit of the activity driver is assumed to be equal to the standard price): Activity Activity Driver SO SP Receiving Receiving orders 5,600 28,500 $9 Assembly Labor hours 117,000 142,500 7 Expediting Orders expedited 0 9,500 22 Storing...
Cost Report, Value Added and 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 Purchasing parts Receiving parts Purchase orders Receiving orders Number of moves Setup hours SQ AQ SP 3,100 4,570 $255 6,200 8,500 245 0 2,700 380 0 9,500395 Moving parts Setting up...
Based on the data, prepare a cost report that shows value-added costs, non-value-added costs, and total costs for each activity Assembly: Standard Quantity, 10,000 units; Actual Quantity, 15,000 units; Standard Price, $20 Storing: Standard Quantity, zero units; Actual Quantity, 80,000 units; Standard Price, $10
1., Which of the following statements is(are) true about non value added activities? Non value added activities are often unnecessary and dispensable Non value added activities maybe necessary but are being performed in an inefficient and improvable manner Non value added activities can be eliminated without deterioration of product quality, performance or perceived value A, b, and c A and b 2. Which of the following is least likely to be classified as a facility level activity in an activity-based...
Cost of Quality and Value-Added/Non -Value-Added Reports for a Service Company Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows: a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. Value-Added / Activity Quality Cost Non-Value-Added Quality Control Activities Cost Classification Classification Billing error correction $24,500 Cable signal testing 91,800 Reinstalling service (installed incorrectly the first...
Cost of Quality and Value-Added/Non-Value-Added Reports for a Service Company Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows: a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. Quality Control Activities Activity Cost Quality Cost Classification Value-Added/ Non-Value-Added Classification Billing error correction $22,600 Cable signal testing 79,900 Reinstalling service (installed incorrectly the first time) 48,500...