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 value-added costs for labor are
A) $900,000.
B) $792,000.
C) $84,000.
D) $75,000.

Question

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 value-added costs for labor are
A) $900,000. 
B) $792,000. 
C) $84,000. 
D) $75,000.

Quizplus · Accepted Answer

The value-added costs for labor are typically the direct labor costs that contribute to the production of goods or services. In this context, $900,000 is the most likely figure representing the total direct labor costs.

Larry Corporation Has Developed Ideal Standards for Four Activities: Labor