1. EX.12.08.ALGO (Algorithmic) Non-Value-Added Activities: Non-Value-Added Cost Thayne Company has 38 clerks that work in its Accounts Payable Department. A study revealed the following activities and the relative time demanded by each activity: Activities Percentage of Clerical Time Comparing purchase orders and receiving orders and invoices Resolving discrepancies among the three documents Preparing checks for suppliens Making journal entries and mailing checks The average salary of a clerk is $44,500 14% 75 Required Classify the four activities as value-added or non-value-added, and calculate the clerical cost of each activity Comparing documents Resolving discrepancies Preparing checks Mailing checks 2. EX.12.14.ALGO (Algorithmic) 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: Activity Driver SQ AQ SP 2,200 3,290 $125 Receiving orders 4,400 7,300 290 Number of moves 2,300 200 0 6,600 290 Activities Purchasing parts Receiving parts Moving parts Setting up equipment Setup hours Purchase orders