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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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