classifying activities according to level determining value a 384267

Classifying Activities According to Level, Determining Value Added or Nonvalue Added [LO2]

Summer Company manufactures flowerpots in several different sizes and has identified the following activities in its manufacturing process.

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Required:

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