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	12,000	30,000	$21
Assembly	Labor hours	123,000	150,000	15
Expediting	Orders expedited	0	10,000	50
Storing	Number of units	0	20,000	7

Required:

Hide

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".

Cicleta Manufacturing
Value and Non-Value-Added Cost Report
For the Year Ended 2014
Activity		Value-Added Costs		Non-Value-Added Costs		Total Costs
Receiving		$ Correct 9 of Item 1		$ Correct 10 of Item 1		$ Correct 11 of Item 1
Assembly		Correct 13 of Item 1		Correct 14 of Item 1		Correct 15 of Item 1
Expediting		Correct 17 of Item 1		Correct 18 of Item 1		Correct 19 of Item 1
Storing		Correct 21 of Item 1		Correct 22 of Item 1		Correct 23 of Item 1
Total		$ Correct 25 of Item 1		$ Correct 26 of Item 1		$ Correct 27 of Item 1