Larry Ltd.has developed ideal standards for four activities: labour, 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 nonvalue-added costs for materials are

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

Question

Larry Ltd.has developed ideal standards for four activities: labour, 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 nonvalue-added costs for materials are

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

Quizplus · Accepted Answer

The Answer of Larry Ltd.has developed ideal standards for four activities: labour, 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 nonvalue-added costs for materials are

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

Larry LtdHas Developed Ideal Standards for Four Activities: Labour, Materials, Inspection