Hogwarts Company Has Developed Ideal Standards for Four Activities: Labor

question 14

Multiple Choice

Hogwarts Company has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows:
$$\begin{array} { l l r r r } \text { Activity } & \text { Activity Driver } & \text { SQ } &{ \text { AQ } } & \text { SP } \\\text { Inspection } & \text { Inspection hours } & 0 & 40,000 &\$4\\\text { Labor } & \text { Hours } & 33,000 & 39,000&7 \\\text { Materials } & \text { Pounds } & 110,000 & 115,000 &4\\\text { Receiving } & \text { Orders } & 150 & 190&150\end{array}$$
The actual prices paid per unit of each activity driver were equal to the standard prices. The non-value-added costs for labor are

• A)$198,000.
• B)$34,000.
• C)$42,000.
• D)$31,000.

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Definitions:

Limited Partnership

A partnership arrangement where at least one partner has limited liability to the extent of their investment in the business, while at least one other has unlimited liability.

General Partner

A partner in a partnership who has unlimited liability for the debts of the partnership and takes part in the management of the business.

Management

The process of planning, organizing, leading, and controlling resources to achieve organizational goals efficiently and effectively.

Winding-Up Process

The formal procedure for disbanding a corporation or partnership, involving liquidating assets to pay creditors and distributing any remaining assets to the owners or shareholders.