Goodyear, Inc The Actual Prices Paid Per Unit of Each Activity Driver

question 44

Essay

Goodyear, Inc., has developed ideal standards for four activities: labor, materials, inspection, and receiving.
Information is as follows: $$\begin{array} { l l r r } \text { Activity } & \text { Activity Driver } & \mathrm { SQ } & \mathrm { AQ } \\\text { Labor } & \text { Hours } & 30,000 & 38,000 \\\text { Materials } & \text { Pounds } & 110,000 & 160,000 \\\text { Inspection } & \text { Inspection hours } & 0 & 50,000 \\\text { Receiving } & \text { Orders } & 600 & 700\end{array}$$
The actual prices paid per unit of each activity driver were equal to the standard prices.
Required:
Complete the following cost report: $\begin{array} { l }\text { Activity }&\text { Value-Added } & \text { Non-value-Added } & \text { Actual }\\\hline \text { Labor}&\$\_\_\_&\$\_\_\_&\$\_\_\_\\ \text {Materials }\\ \text { Inspection}\\ \text {Receiving }\\ \text { Totals}&\$\_\_\_&\$\_\_\_&\$\_\_\_\\\end{array}$

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Definitions:

Outstanding Cheques

Checks that have been written and recorded in the payor's ledger but have not yet been cashed or cleared by the bank.

NSF

An acronym for "Non-Sufficient Funds," indicating that an account does not have enough money to cover a presented check or withdrawal.

Cash Management

The process of collecting, managing, and investing a company's cash flows in a way that maximizes liquidity and profitability.

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell it, and convert the sale into cash through customer payments.