PHH is a manufacturing company. The managers are currently preparing the company’s annual budgets. The following has been extracted:

-what is the total cost of material B used in production of Q, P and R?

Question

PHH is a manufacturing company. The managers are currently preparing the company’s annual budgets. The following has been extracted:

-what is the total cost of material B used in production of Q, P and R?

Quizplus · Accepted Answer

From the table, we can see that Material B is used in the production of Q, P, and R with the following usage rates respectively: 3 kg/unit, 2 kg/unit, and 4 kg/unit.

Therefore, the total amount of Material B used in the production of Q, P, and R can be calculated as follows:
Total for Q = 3 kg/unit x 150 units = 450 kg
Total for P = 2 kg/unit x 180 units = 360 kg 
Total for R = 4 kg/unit x 120 units = 480 kg

So the total amount of Material B used in the production of Q, P, and R = 450 kg + 360 kg + 480 kg = 1290 kg.

The cost of Material B per kg is £0.72, so the total cost of Material B used in the production of Q, P, and R = 1290 kg x £0.72/kg = £936.

Therefore, the correct answer is B.

PHH Is a Manufacturing Company