Which Action Would Not Be Undertaken If Capacity Requirements Planning

question 23

Multiple Choice

Which action would not be undertaken if capacity requirements planning (CRP) indicate one or more work stations are projected to be under loaded or over loaded?

• A)Shifting some orders to adjacent periods.
• B)Transferring employees from other areas.
• C)Scheduling overtime.
• D)Revise the MPS and MRP.
• E)Re-run the load report using different values.

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders based on a specific activity base, such as labor hours or machine hours.

Machine-Hours

A measure of the amount of time a machine is operated within a given period.

Direct Labor-Hours

The total hours worked by employees who are directly involved in the production process.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate estimated overhead costs to products based on a predetermined activity base.