In an effort to expand the usefulness of its activity based

Reference no: EM13597236

In an effort to expand the usefulness of its activity based costing system, Wayne Kaegi's Verde Vineyards decides to adopt activity based management techniques. One of these ABM techniques is classifying its activities as either value added or non value added.

Classify each ot the activities as either valued added or non value added.

1. Culling and relplanting. Dead or overcrowded vines are culled and new vines are planted or relocated.
2. Tying. The posts and wired are reset, and vines are tied to the wired for the dormant season.
3. Trimming. At the end of the harvest the vines are cut and trimmed back in preparation for the next season.
4. Spraying. The vines are sprayed with chemicals for protection against insects and fungi.
5. Harvesting. The grapes are hand picked, placed in carts, and transported to the crushers.
6. Stemming and crushing. Cartfuls of bunches of grapes of each variety are separately loaded into machines which remove stems and gently crush the grapes.
7. Pressing and filtering. The crushed grapes are transferred to presses which mechanically remove the juices and filter out bulk and impurities.
8. Fermentation. The grape juice, by variety, is fermented in either stainless stell tanks or oak barrels.
9. Aging. The wines are aged in either stainless stell tanks or oak barrels for one to three years depending on variety.
10. Bottling and corking. Bottles are machine filled and corked.
11. Labeling and boxing. Each bottle is labeled as is each nine bottle case with the name of the vinter, vintage, and variety.
12. Storing. Packaged and boxed bottles are stored awaiting shipment.
13. Shipping. The wine is shipped to distributors and private retailers.
14. Heating and air conditioning of plant and offices.
15. Maintenance of buildings and equipment. Printing, repairs, replacements, and general maintence are performed in the off season.

Reference no: EM13597236

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