Mccawl company has developed value-added standards for four

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Reference no: EM13597061

McCawl Company 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 2009 are as follows:

Activities activity drivers SQ AQ SP
Purchasing parts purchase orders 1000 1400 150
receiving parts receiving orders 2000 3000 100
moving parts Number of moves 0 1000 200
setting up equipment setup hours 0 4000 60

The actual price paid per unit of each activity driver were equal to the standard prices.
Required:
1) Prepare a cost report that lists the value-added, non-value added, and actual cost for each activity.
2) Which activities are non-value-added? Explain why. Also, explain why value-added activities can have non-value-added costs.

Reference no: EM13597061

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