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

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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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