Required:1. Calculate the volume and unused capacity variances for inspecting. E

Required:1. Calculate the volume and unused capacity variances for inspecting. Explain what each variance means.2. Prepare a report that presents value-added non-value-added and actual costs for inspecting. Explain why highlighting the non-value-added costs is important.3. Explain why inspecting should be viewed as a non-value-added activity. In providing your explanation consider the following counterargument: ?oInspecting incoming goods adds value because it reduces the demand for other unnecessary activities such as rework reordering and warranty work.??4. Assume that management is able to reduce the demand for the inspecting activity so that the actual hours needed drop from 18000 to 9000. What actions should now be taken regarding activity capacity management?