Friedrich Company Has Developed Ideal Standards for Four Activities: Labour

question 9

Multiple Choice

Friedrich Company has developed ideal standards for four activities: labour, materials, inspection, and receiving.
Information is as follows:
$\begin{array}{llccc}\underline{\text { Activity }} &\underline{ \text { Activity Driver }} & \underline{\text {S Q}} & \underline{\text {A Q}}&\underline{\text {SP}}\\\text { Inspection } & \text { Inspection hours } & 0 & 40,000&\$4 \\\text { Labour } & \text { Hours } & 50,000 & 56,000&6 \\\text { Materials } & \text { Kilograms } & 100,000 & 105,000 &5\\\text { Receiving } & \text { Orders } & 150 & 190&150\end{array}$


The actual prices paid per unit of each activity driver were equal to the standard prices.
-Refer to the figure.What are the non-value-added costs for labour?

• A)$300,000
• B)$36,000
• C)$28,000
• D)$25,000

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Definitions:

Hospitalization

The act of admitting a patient to a hospital for medical care, observation, or treatment.

Income

Money or equivalent value received, usually in exchange for labor or services, from investments, or as transfers like gifts and benefits.

Acceptable Range

A set of values or conditions deemed satisfactory or within an acceptable limit, often used in the context of quality control or standardization.

Diabetes

A chronic condition characterized by high levels of sugar in the blood due to insulin production or function issues.