Larry Corporation Has Developed Ideal Standards for Four Activities: Labour

question 82

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 actual costs for receiving?

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

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Definitions:

Return on Investment

A measure of the profitability of an investment, calculated as the net income from the investment divided by the cost of the investment.

Residual Income

Income that continues to be generated after the initial effort or investment has been completed, often used in the context of investments or intellectual property.

Net Operating Income

A measure of a company's profitability from its ordinary, core operations, excluding expenses and incomes from financing and investing activities.

Investment

The allocation of resources, such as capital or time, in the expectation of generating an income or profit.