Larry Corporation Has Developed Ideal Standards for Four Activities: Labor

question 29

Multiple Choice

Larry Corporation has developed ideal standards for four activities: labor, materials, inspection, and receiving.Information is as follows: The actual prices paid per unit of each activity driver were equal to the standard prices
-The non-value-added costs for materials are

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

---

Definitions:

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, assigning weights to some numbers more than others.

FOB Shipping Point

This term indicates that the buyer is responsible for the goods and their shipping costs as soon as the goods leave the seller's premises.

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from total revenue.

Ending Inventory

The closing stock value, determined at the end of a financial period, is the sum of the initial inventory and acquisitions, less the cost of goods sold.