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 5,600 21,000 $9 Assembly Labor hours 87,000 105,000 7 Expediting Orders expedited 0 7,000 22 Storing Number of units 0 14,000 3 Required 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 $fill in the blank 4c30d9f71febf86 1 $fill in the blank 4c30d9f71febf86 2 $fill in the blank 4c30d9f71febf86 3 Assembly fill in the blank 4c30d9f71febf86 4 fill in the blank 4c30d9f71febf86 5 fill in the blank 4c30d9f71febf86 6 Expediting fill in the blank 4c30d9f71febf86 7 fill in the blank 4c30d9f71febf86 8 fill in the blank 4c30d9f71febf86 9 Storing fill in the blank 4c30d9f71febf86 10 fill in the blank 4c30d9f71febf86 11 fill in the blank 4c30d9f71febf86 12 Total $fill in the blank 4c30d9f71febf86 13 $fill in the blank 4c30d9f71febf86 14 $fill in the blank 4c30d9f71febf86 15 2 Explain why expediting products and storing goods are non value added activities

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Question: 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

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	5,600	21,000	$9
Assembly	Labor hours	87,000	105,000	7
Expediting	Orders expedited	0	7,000	22
Storing	Number of units	0	14,000	3

Required:

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	$fill in the blank 4c30d9f71febf86_1	$fill in the blank 4c30d9f71febf86_2	$fill in the blank 4c30d9f71febf86_3
Assembly	fill in the blank 4c30d9f71febf86_4	fill in the blank 4c30d9f71febf86_5	fill in the blank 4c30d9f71febf86_6
Expediting	fill in the blank 4c30d9f71febf86_7	fill in the blank 4c30d9f71febf86_8	fill in the blank 4c30d9f71febf86_9
Storing	fill in the blank 4c30d9f71febf86_10	fill in the blank 4c30d9f71febf86_11	fill in the blank 4c30d9f71febf86_12
Total	$fill in the blank 4c30d9f71febf86_13	$fill in the blank 4c30d9f71febf86_14	$fill in the blank 4c30d9f71febf86_15

2. Explain why expediting products and storing goods are non-value-added activities.

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