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Value- and Non-Value Added Cost Reporting Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 2014 (actual price per unit of the activity driver is assumed to be equal to the standard price): SQ SP Activity Driver Receiving orders 15,200 $27 Activity Receiving Assembly Expediting AQ 24,000 120,000 8,000 Labor hours 99,000 19 Orders expedited 0 64 Storing Number of units 0 16,000 9 Required: 1. Prepare a cost report for the year ending 2014 that shows value-added costs, non-value-added costs, and total costs for each activity. If an amount is zero, enter "O". Cicleta Manufacturing Value and Non-Value Added Cost Report For the Year Ended 2014 Activity Value Added Costs Non-Value Added Costs Total Costs Receiving $1 Assembly Expediting Storing Total 2. Explain why expediting products and storing goods are non-value-added activities. 2. Explain why expediting products and storing goods are non-value-added activities. Both are necessary activities Both are unnecessary activities Both result in a change of state for the product

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