__________Is the Process of Determining the Amount of Labor and Machine

question 9

Multiple Choice

__________is the process of determining the amount of labor and machine resources required to accomplish the tasks of production on a more detailed level, taking into account all component parts and end items in the materials plan.

• A) Capacity requirements planning
• B) Materials requirements planning explosion
• C) Disaggregation
• D) Execution

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Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in the production of goods or services.

Variable

An element, feature, or factor that is liable to vary or change.

Machine Hours

A measure of production time, calculated by the total hours machines are in operation over a set period.

Under-Applied Overhead

A situation where the allocated overhead costs are less than the actual overhead incurred.