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

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Accounting

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.$200,000

b.$450,000

c.$400,000

d.$150,000

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