Use the Following Information for the Next 4 Questions

question 45

Multiple Choice

Use the following information for the next 4 questions.
Quick Start Engines has two departments, Assembly and Testing. You are given the following information about the costs of 5 activities that occur at the manufacturing plant monthly: (continued on the next page)
The above activities are used by the two departments as follows:
-What is the ABC allocation rate for supervision of direct labor?

• A) $3,500 per employee
• B) $1,500 per employee
• C) $0.50 per part
• D) $50 per hour spent in supervision

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Definitions:

Manufacturer-Driven Substitution

A process where manufacturers suggest or implement alternative products or components to fulfill customer needs, often due to supply constraints or to offer a better value.

Aggregation Of Demand

Combining multiple demands for goods or services to gain efficiencies or insights, often used in forecasting or capacity planning.

Inventory Requirements

The specific amount of stock needed to meet customer demand while minimizing holding costs.

Continuous Review

An inventory management approach where stock levels are constantly monitored and replenished in real-time, often automated.