8,000 Kg
9,840 kg
10,000 Kg
10,160 Kg
Answer is Right!
Answer is Wrong!
The correct answer is B. 9,840 kg.
The material usage budget is calculated as follows:
Material usage budget = Production quantity x Material per unit x (1 + Closing inventory/Opening inventory)
= 5,000 units x 2 kg/unit x (1 + 120/100)
= 9,840 kg
The other options are incorrect because they do not take into account the closing inventory.