Bandolero Corporation Has Developed Ideal Standards for Four Activities: Labor

Multiple Choice

Bandolero Corporation has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows: $$\begin{array} { l l r r r } \text { Activity } & \text { Activity Driver } & \text { SQ } &{ \text { AQ } } & \text { SP } \\\text { Inspection } & \text { Inspection hours } & 0 & 40,000 & \$ 12 \\\text { Labor } & \text { Hours } & 50,000 & 56,000 & 18 \\\text { Materials } & \text { Pounds } & 100,000 & 105,000 & 15 \\\text { Receiving } & \text { Orders } & 150 & 190&450\end{array}$$ The actual prices paid per unit of each activity driver were equal to the standard prices. The non-value-added costs for inspection are

A) $480,000.
B) $60,000.
C) $420,000.
D) $40,000.