Peridot Company Has Developed Ideal Standards for Four Activities: Labor

Multiple Choice

Peridot Company has developed ideal standards for four activities: labor, materials, inspection, and receiving.
Information is as follows:
$\begin{array}{llrrr}&&\text { Standard}&\text {Actual }&\text { Standard}\\\text { Activity } & \text { Activity Driver } & \text { Quantity } & \text { Quantity } & \text { Frice } \\\text { Inspection } & \text { Inspection hours } & & 20,000 & \$ 8 \\\text { Labor } & \text { Hours } & 20,000 & 25,000 & 6 \\\text { Materials } & \text { Pounds } & 90,000 & 120,000 & 5 \\\text { Receiving } & \text { Orders } & 200 & 250 & 210\end{array}$
Compute the value-added costs for materials.

A) $450,000
B) $150,000
C) $400,000
D) $200,000