Acme Company has developed value-added standards for four activities: purchasing, labor, materials, and maintenance. The activities, the activity drivers, the value-added and actual quantities, and the price standards are given below for 2019:

Activity Driver Std quality Actual Quality std price

Purchasing orders 100 125 $350

labour labour hours 10000 17500 $10

materials kilograms 150000 198000 $0.10

Maintenance Machine hrs 25000 33000 $1.50

The actual prices paid per unit of each activity driver were equal to the standard prices.Required:

1. Prepare report that lists the value-added costs, non value-added costs, and the actual costs for each activity. [6 marks]

2. Explain each reported non-value-added activity. [4 marks]