Question
Bandolero Corporation has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows: Activity Activity Driver SQ AQ SP Inspection
Bandolero Corporation has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows:
| Activity | Activity Driver | SQ | AQ | SP |
| Inspection | Inspection hours | 0 | 40,000 | $ 12 |
| Labor | Hours | 50,000 | 56,000 | 18 |
| Materials | Pounds | 100,000 | 105,000 | 15 |
| Receiving | Orders | 150 | 190 | 450 |
The actual prices paid per unit of each activity driver were equal to the standard prices. The value-added costs for labor are
a.$900,000.
b.$792,000.
c.$84,000.
d.$75,000.
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Management Accounting A Business Planning Approach
Authors: Noah P. Barsky, Jr. Anthony H. Catanach
2nd Edition
1516506286, 978-1516506286
