Consider the Following Information on Activities A Which of the Three Activities, If Any, Is Value-Added?
B

question 96

Essay

Consider the following information on activities: $$\begin{array} { l r r r } & \begin{array} { r } \text { Amount of } \\\text { Driver That }\end{array} & \text { Actual } & \text { Cost per Unit } \\\text { Activity (driver) } & \text { Should be Used } & \text { Amount Used } & \text { of Driver } \\\text { Purchasing (purchase orders) } & 48,000 & 53,000 & \$ 40 \\\text { Inspection (inspection hours) } & 0 & 22,000 & \$ 30 \\\text { Rework (labour hours) } & 0 & 13,000 & \$ 20\end{array}$$
A. Which of the three activities, if any, is value-added?
B. What is the non-value-added cost of each activity?
C. What is the total value-added cost of the activities?