A Mechanical Cat Is Made of Two Front Leg Assemblies,a

question 3

Multiple Choice

A mechanical cat is made of two front leg assemblies,a body assembly,one tail,one head assembly,and two back leg assemblies.Each head assembly has two eyes,one nose,one mouth,and 24 whiskers.Each back leg assembly has one foot,five claws,one each fibula,tibia,and femur.The cat production company runs a lot for lot system on everything except the heads,which they order in cases of 24,and the whiskers,which come in boxes of 1000.Lead time for assembly and shipping is shown in the table.Use the master production schedule for mechanical cats to complete the MRP record.What's the planned order release for whiskers in week 2?

• A) 6000
• B) 5000
• C) 4000
• D) 8000

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Definitions:

Overhead Volume Variance

The difference between the budgeted and actual overhead costs due to changes in the level of production or activity.

Total Overhead Variance

The difference between the actual overhead costs incurred and the overhead costs that were budgeted or applied based on a standard cost system.

Overhead Controllable Variance

Overhead controllable variance refers to the difference between expected controllable overhead costs and the actual costs directly managed by a department or manager.

Overhead Volume Variance

A measure used to evaluate the difference between expected and actual overhead costs, based on the volume of goods produced.