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 10,400 28,500 $18 Assembly Labor hours 117,000 142,500 13 Expediting Orders expedited 0 9,500 43 Storing Number of units 0 19,000 6 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 $fill in the blank $fill in the blank Assembly fill in the blank fill in the blank fill in the blank Expediting fill in the blank fill in the blank fill in the blank Storing fill in the blank fill in the blank fill in the blank Total $fill in the blank $fill in the blank $fill in the blank

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 1CE: Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and...

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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	10,400	28,500	$18
Assembly	Labor hours	117,000	142,500	13
Expediting	Orders expedited	0	9,500	43
Storing	Number of units	0	19,000	6

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	$fill in the blank	$fill in the blank
Assembly	fill in the blank	fill in the blank	fill in the blank
Expediting	fill in the blank	fill in the blank	fill in the blank
Storing	fill in the blank	fill in the blank	fill in the blank
Total	$fill in the blank	$fill in the blank	$fill in the blank

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