12-9 Cost report, value-added and value added cost McCawl company has developed value-added standards for

four activities: purchasing parts, receiving parts, moving parts, and setting up equipment. The activities, the activity driver, ad standard and actual quantities, and the price standards for 2009 are as follows: Activities SP Purchasing parts Receiving parts 100 Moving parts Setting up equipment 60 Activity Driver Purchase orders Receiving parts Number of moves Setup hours 0 0 1,000 SQ 1,400 2,000 1,000 4,000 AQ $150 3,000 200

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

Required: 1. Prepare a cost reports that list the value-added, non-value-added, and actual costs for each activity. 2. Which activity are non-value-added? Explain why. Also, explain why valueadded activities can have non-value-added cost.

a. Value and non-value-added cost report Activity actual cost Purchasing parts Receiving parts 440,000 Moving parts 80,000 Setting up equipment 60,000 0 0 Value-added cost 150,000 200,000 non-value-added cost 210,000 240,000 80,000 60,000 360,000

b. Yang merupakan non-value-added cost adalah aktivitas pemindahan dan penyetelan karena kedua aktivitas tersebut tidak terlalu penting dan tidak bisa memberikan nilai tambah bagi konsumen. Value-added activities bisa mempunyai non-value-added cost karena dalam aktivitas yang menambah nilai tambah bagi konsumen juga memiliki aktivitas yang tidak penting daklam prosesnya seperti waktu menunggu dan pengerjaan ulang.