Larry Corporation Has Developed Ideal Standards for Four Activities: Labour

question 108

Multiple Choice

Larry Corporation has developed ideal standards for four activities: labour, materials, inspection, and receiving. Information is as follows:
$\begin{array}{llccc}\underline{\text { Activity }} &\underline{ \text { Activity Driver }} & \underline{\text {S Q}} & \underline{\text {A Q}}&\underline{\text {SP}}\\\text { Inspection } & \text { Inspection hours } & 0 & 40,000&\$12 \\\text { Labour } & \text { Hours } & 50,000 & 56,000&18 \\\text { Materials } & \text { Kilograms } & 100,000 & 105,000 &15\\\text { Receiving } & \text { Orders } & 150 & 190&450\end{array}$
The actual prices paid per unit of each activity driver were equal to the standard prices.
-Refer to the figure.What are the non-value-added costs for materials?

• A)$1,575,000
• B)$157,500
• C)$150,000
• D)$75,000

---

Definitions:

Wrongful Civil Proceedings

The act of initiating or conducting civil legal actions without proper grounds, often causing harm or inconvenience to the defendant.

Liability

A legal responsibility or obligation, often financially, that arises from actions or claims against an individual or entity.

Emotional Distress

A legal term denoting psychological suffering or anguish inflicted upon a person due to another's wrongful conduct.

Invasion of Privacy

The act of intruding into someone's personal life without consent, leading to violation of their privacy rights.