Question

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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  • CreatedJune 27, 2014
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