Larry Corporation Has Developed Ideal Standards for Four Activities: Labour

question 18

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 value-added costs for labour?

• A)$900,000
• B)$792,000
• C)$84,000
• D)$75,000

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Definitions:

Situational Constraints

External factors present in the environment that limit or shape an individual's behavior or choices.

Survival

Living longer.

Theory of Evolution

A scientific explanation for the diversity of life on Earth, proposing that species change over time through processes such as natural selection.

Charles Darwin

A British naturalist renowned for his theory of evolution through natural selection, fundamentally changing the study of biology.