Friedrich Company has developed ideal standards for four activities: labor, materials, inspection, and receiving.Information is as follows:
-The value-added costs for materials are
A) $525,000.
B) $500,000.
C) $50,000.
D) $25,000.

Question

Friedrich Company has developed ideal standards for four activities: labor, materials, inspection, and receiving.Information is as follows:  
-The value-added costs for materials are
A) $525,000. 
B) $500,000. 
C) $50,000. 
D) $25,000.

Quizplus · Accepted Answer

Based on the information given, we cannot determine the value-added costs for labor, inspection, and receiving. However, we are given the ideal standards for these activities. Therefore, we can only determine the value-added costs for materials, which is $500,000. Thus, the correct answer is B.

Friedrich Company Has Developed Ideal Standards for Four Activities: Labor