Question

Broha Company manufactured 1,500 units of its only product during 2016. The inputs for this production are as follows:

450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour

The firm manufactured 1,800 units of the same product in 2015 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour

The partial operational productivity of Material H in 2015 is: ___________

a. 0.20.
b. 5.00.
c. 2.00.
d. 0.50.
e. 6.00.

Answer 1

c. 2.00.

Step-by-step explanation:

The computation of the partial operating activity is given below:

The cost of material H is

= 360 × $2.50

= $900

Now the partial productivity of material H is

= 1,800 ÷ 900

= 2

Hence, the correct option is c.