Ch 4 Homework Question 1-4 value: 25.00 points Lindwood Company manufactures cof

Question

Ch 4 Homework

Question 1-4

value: 25.00 points Lindwood Company manufactures coffee cups in several different sizes and has identified the following activities in its manufacturing process Required: 1., 2.&3. Classify each activity listed as facility, product, batch, or unit level, identify a cost driver for each activity listed and indicate whether each activity is value-added or non-value-added Activity Cost Driver alue-Added/ Non Level Value-Added Storing inventory Creating molds Pouring plaster Firing pots in kiln Sanding and finishing Painting Performing quality control Ordering materials Delivering an order to a large customer such as Home Depot Insuring the manufacturing facility Reconfiguring machinery between batches

Explanation / Answer

1)

Note:- As per guidelines I have answered the first question only.

Activity Level Cost Driver Value-Added/ Non- Value-Added Storing inventory Facility Sq.Footage Non- Value-Added Creating molds Unit, product,Batch Molds Used Value-Added Pouring plaster Unit, Batch Units Value-Added Firing pots in kiln Unit, Batch Batches fired Value-Added Sanding and finishing Unit Units, Labour hours Value-Added Painting Unit Units, Labour hours Value-Added Performing quality control Batch,Product Inspections Non- Value-Added Ordering materials Facility,Batch,Product Orders Non- Value-Added Delivering an order to a large customer such as Home Depot Batch Deliveries Value-Added Insuring the manufacturing facility Facility Sq.Footage Value-Added Reconfiguring machinery between batches Batch Batches Non- Value-Added

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