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

Assembly

Expediting

Storing

Total

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