Non$-$Value$-$Added Activities: Non$-$Value$-$Added Cost

Thayne Company has $39$ derks that work in its Accounts Payable Department. A study revealed the following activities and the relative time dernanded by each activity:

Activities

Percentage of Clerical Time

Comparing purchase orders and receiving orders and invoices

$13\%$

Resolving discrepancies among the three documents

Preparing checks for suppliers

Making journal entries and mailing checks

$72$

The average salary of a clerk is $$40,300.$

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