Bandolero Corporation Has Developed Ideal Standards for Four Activities: Labor

question 105

Multiple Choice

Bandolero Corporation has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows: $$\begin{array} { l l r r r } \text { Activity } & \text { Activity Driver } & \text { SQ } &{ \text { AQ } } & \text { SP } \\\text { Inspection } & \text { Inspection hours } & 0 & 40,000 & \$ 12 \\\text { Labor } & \text { Hours } & 50,000 & 56,000 & 18 \\\text { Materials } & \text { Pounds } & 100,000 & 105,000 & 15 \\\text { Receiving } & \text { Orders } & 150 & 190&450\end{array}$$ The actual prices paid per unit of each activity driver were equal to the standard prices. The value-added costs for labor are

• A)$792,000.
• B)$900,000.
• C)$84,000.
• D)$75,000.

Identify the responsibilities and liabilities of partners in a partnership.

Distinguish between various business entities regarding formation, operation, and dissolution.

Understand the concept of limited liability and how it protects business owners.

Grasp the differences between joint ventures and other forms of business partnerships.

---

Definitions:

Interest Rate

The cost, shown as a percentage of the principal amount, that a lender requires from a borrower to use resources.

Bond

A financial instrument representing a loan made by an investor to a borrower, typically corporate or governmental, which pays back with interest.

Persian Gulf

A marginal sea of the Indian Ocean between the Arabian Peninsula and Iran, known for its strategic location and significant oil reserves.

Economic Theory

A conceptual framework that explains the workings of economies, encompassing principles like supply and demand, production, distribution, and consumption.