Peridot Company has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows:

Activity	Activity Driver	Standard Quantity	Actual Quantity	Standard Price
Inspection	Inspection hours		20,000	$ 8
Labor	Hours	20,000	25,000	6
Materials	Pounds	90,000	120,000	5
Receiving	Orders	200	250	210

Compute the value-added costs for materials.

a.$450,000

b.$200,000

c.$400,000

d.$150,000