Bandolero Corporation Has Developed Ideal Standards for Four Activities: Labor

question 1

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 actual costs for receiving are

• A)$49,500.
• B)$67,500.
• C)$85,500.
• D)$18,000.

---

Definitions:

Unilateral Promise

A pledge or commitment by one party to perform an act without requiring a reciprocal promise from another party.

Consideration

Something of value that is exchanged between parties in a contract, which is necessary for the agreement to be legally binding.

Performance

The action or process of carrying out or accomplishing an action, task, or function.

Oral Contract

An agreement made through spoken words rather than written, which can be legally binding under certain conditions.