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, as the price standards for 20x1 are as follows: Activities Activity Driver SQ AQ SP Purchasing parts Purchase orders 2,600 3,640 $300 Receiving parts Receiving orders 5,200 7,800 195 Moving parts Number of moves 2,600 390 Setting up equipment Setup hours O 10,400 117 The actual prices paid per unit of each activity driver were equal to the standard prices. 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. Activities Activity Driver SQ AQ SP Purchasing parts Purchase orders 2,600 3,120 $300 Receiving parts Receiving orders 5,200 6,500 195 Moving parts Number of moves 840 395 Setting up equipment Setup hours O 2,600 117 Required: 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 20x1 20x2 Change Purchasing parts 780,000 x $ Receiving parts 1,014,000 X Moving parts Setting up equipment Total * 1,794,000 x

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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
Activity Driver
SQ
AQ
SP
Purchasing parts
Purchase orders
2,600
3,640
$300
Receiving parts
Receiving orders
5,200
7,800
195
Moving parts
Number of moves
2,600
390
Setting up equipment
Setup hours
10,400
117
The actual prices paid per unit of each activity driver were equal to the standard prices.
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.
Activities
Activity Driver
sQ
AQ
SP
Purchasing parts
Purchase orders
2,600 3,120
$300
Receiving parts
Receiving orders
5,200 6,500
195
Moving parts
Number of moves
840
395
Setting up equipment
Setup hours
2,600
117
Required:
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
20x1
20x2
Change
Purchasing parts
780,000 x $
Receiving parts
1,014,000 X
Moving parts
Setting up equipment
$1,794,000
x
Total
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 Activity Driver SQ AQ SP Purchasing parts Purchase orders 2,600 3,640 $300 Receiving parts Receiving orders 5,200 7,800 195 Moving parts Number of moves 2,600 390 Setting up equipment Setup hours 10,400 117 The actual prices paid per unit of each activity driver were equal to the standard prices. 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. Activities Activity Driver sQ AQ SP Purchasing parts Purchase orders 2,600 3,120 $300 Receiving parts Receiving orders 5,200 6,500 195 Moving parts Number of moves 840 395 Setting up equipment Setup hours 2,600 117 Required: 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 20x1 20x2 Change Purchasing parts 780,000 x $ Receiving parts 1,014,000 X Moving parts Setting up equipment $1,794,000 x Total
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