classifying activities according to level determining value a 384267 | Homework Solutions
Classifying Activities According to Level, Determining Value Added or Nonvalue Added [LO2]
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Summer Company manufactures flowerpots in several different sizes and has identified the following activities in its manufacturing process. Don't use plagiarized sources. Get Your Custom Essay on
classifying activities according to level determining value a 384267 | Homework Solutions
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Classify each activity listed as facility, product, customer, batch, or unit level, identify a cost driver for each activity listed and indicate whether each activity is value added or nonvalue added. |
| Activity | Level | Cost driver | Value added |
| Storing inventory | (Click to select) Facility, batch, product Unit, batch Batch, customer Facility Unit, product, batch Batch Unit Batch, product | (Click to select) Units, labor hours Inspections Molds used Batches Units Batches fired Deliveries Sq. footage Orders | (Click to select) Value added Non value added |
| Creating molds | (Click to select) Batch Batch, product Facility, batch, product Unit Facility Unit, batch Unit, product, batch Batch, customer | (Click to select) Inspections Batches Deliveries Molds used Units, labor hours Units Orders Sq. footage Batches fired | (Click to select) Value added Non value added |
| Pouring plaster | (Click to select) Unit, product, batch Batch, product Facility Facility, batch, product Unit Unit, batch Batch Batch, customer | (Click to select) Inspections Batches Batches fired Units Sq. footage Orders Units, labor hours Deliveries Molds used | (Click to select) Non value added Value added |
| Firing pots in kiln | (Click to select) Batch, customer Unit Unit, batch Unit, product, batch Facility, batch, product Batch Batch, product Facility | (Click to select) Units Orders Inspections Sq. footage Molds used Deliveries Units, labor hours Batches fired Batches | (Click to select) Value added Non value added |
| Sanding and finishing | (Click to select) Facility Batch, product Batch, customer Facility, batch, product Unit, product, batch Batch Unit, batch Unit | (Click to select) Units, labor hours Orders Molds used Deliveries Batches fired Batches Units Sq. footage Inspections | (Click to select) Value added Non value added |
| Painting | (Click to select) Facility, batch, product Unit Batch Facility Unit, batch Batch, customer Unit, product, batch Batch, product | (Click to select) Batches fired Molds used Inspections Units, labor hours Units Batches Orders Sq. footage Deliveries | (Click to select) Non value added Value added |
| Performing quality control | (Click to select) Batch Unit, batch Batch, product Unit, product, batch Unit Batch, customer Facility Facility, batch, product | (Click to select) Units Units, labor hours Inspections Orders Deliveries Molds used Sq. footage Batches fired Batches | (Click to select) Value added Non value added |
| Ordering materials | (Click to select) Batch Batch, product Unit, product, batch Facility Unit, batch Facility, batch, product Batch, customer Unit | (Click to select) Molds used Batches Batches fired Units, labor hours Units Sq. footage Deliveries Orders Inspections | (Click to select) Non value added Value added |
| Delivering orders to customers | (Click to select) Batch, customer Unit, product, batch Facility Batch Facility, batch, product Batch, product Unit Unit, batch | (Click to select) Orders Units Inspections Sq. footage Batches fired Units, labor hours Deliveries Batches Molds used | (Click to select) Non value added Value added |
| Insuring the manufacturing facility | (Click to select) Unit, batch Unit Facility, batch, product Batch, customer Unit, product, batch Batch, product Facility Batch | (Click to select) Batches fired Units Inspections Batches Units, labor hours Molds used Deliveries Sq. footage Orders | (Click to select) Value added Non value added |
| Reconfiguring machinery between batches | (Click to select) Unit, product, batch Facility Facility, batch, product Batch Batch, product Batch, customer Unit Unit, batch | (Click to select) Sq. footage Inspections Orders Batches Batches fired Deliveries Units Molds used Units, labor hours | (Click to select) Value added Non value added |
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