Pryor Company prepared the following factory overhead report from its general ledger:
Indirect labor .......... $ 250,000
Fringe benefits ........ 30,000
Supplies ............ 70,000
Depreciation ......... 50,000
Total ............ $ 400,000
The management of Pryor Company was dissatisfied with this report and asked the controller to prepare an activity analysis of the same information. This activity analysis was as follows:

Interpret the activity analysis by identifying value-added and non-value-added activity costs. How does the activity cost report differ from the general ledgerreport?

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Processing salesorders Disposing of scrap Expediting workorders Producing parts Resolving supplier quality problems Reissuing corrected purchase orders Expediting customer orders $68,000 17% 96,000 24 80,000 20 44000 56,000 14 40000 0 Total 400,000 100%