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Prepare a report that compares the non-value-added costs for 20x2 with those of 20x1. Enter all your answers as positive amounts. Sanford, Inc. Non-Value-Added Cost Trend Report For the Year Ended December 31, 20x2 20x2 Purchasing parts Receiving parts Moving parts Setting up equipment Total 20x1 Change

Prepare a report that compares the non-value-added costs for 20x2 with those of 20x1. Enter all your answers as positive amounts. Sanford, Inc. Non-Value-Added Cost Trend Report For the Year Ended December 31, 20x2 20x2 Purchasing parts Receiving parts Moving parts Setting up equipment Total 20x1 Change

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Trend Report, Non-Value-Added Costs Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving parts, moving parts, and setting up equipment. The activities, the activity drivers, the standard and actual quantities, and the price standards for 20x1 are as follows: Activities Purchasing parts Receiving parts Moving parts Setting up equipment The actual prices paid per unit of each activity driver were equal to the standard prices. Activities Activity Driver Purchase orders Receiving orders Number of moves Setup hours Suppose that for 20x2, Sanford, Inc., has chosen suppliers that provide higher-quality parts and redesigned its plant layout to reduce material movement. Additionally, Sanford implemented a new setup procedure and provided training for its purchasing agents. As a consequence, less setup time is required and fewer purchasing mistakes are made. At the end of 20x2, the following information is provided. Purchasing parts Receiving parts Moving parts Setting up equipment Required: Purchasing parts Receiving parts Moving parts Setting up equipment Total Activity Driver Purchase orders Receiving orders Number of moves Setup hours SQ AQ SP 2,600 3,640 $300 5,200 7,800 195 0 2,600 390 0 10,400 117 20x1 Prepare a report that compares the non-value-added costs for 20x2 with those of 20x1. Enter all your answers as positive amounts. Sanford, Inc. Non-Value-Added Cost Trend Report For the Year Ended December 31, 20x2 $ 20x2 Change SQ AQ SP 2,600 3,120 $300 5,200 6,500 195 840 395 2,600 117 0 0
Transcribed Image Text:Trend Report, Non-Value-Added Costs Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving parts, moving parts, and setting up equipment. The activities, the activity drivers, the standard and actual quantities, and the price standards for 20x1 are as follows: Activities Purchasing parts Receiving parts Moving parts Setting up equipment The actual prices paid per unit of each activity driver were equal to the standard prices. Activities Activity Driver Purchase orders Receiving orders Number of moves Setup hours Suppose that for 20x2, Sanford, Inc., has chosen suppliers that provide higher-quality parts and redesigned its plant layout to reduce material movement. Additionally, Sanford implemented a new setup procedure and provided training for its purchasing agents. As a consequence, less setup time is required and fewer purchasing mistakes are made. At the end of 20x2, the following information is provided. Purchasing parts Receiving parts Moving parts Setting up equipment Required: Purchasing parts Receiving parts Moving parts Setting up equipment Total Activity Driver Purchase orders Receiving orders Number of moves Setup hours SQ AQ SP 2,600 3,640 $300 5,200 7,800 195 0 2,600 390 0 10,400 117 20x1 Prepare a report that compares the non-value-added costs for 20x2 with those of 20x1. Enter all your answers as positive amounts. Sanford, Inc. Non-Value-Added Cost Trend Report For the Year Ended December 31, 20x2 $ 20x2 Change SQ AQ SP 2,600 3,120 $300 5,200 6,500 195 840 395 2,600 117 0 0
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