Using Constant Workforce and Varying Inventory and Stock Out, What

question 55

Multiple Choice

Using constant workforce and varying inventory and stock out, what would be the constant workforce? Production required in periods 1,2 and 3 respectively are 1200, 1500 and 900 units.One worker during the panning horizon can produce two units in one day.Number of work days are 22 in period 17 in period 2 and 21 in period 3.Assume that the beginning inventory and the edniong inventory required are 300 units each.What is the number of workers required during the planning horizon of three periods?

• A)60
• B)600
• C)35
• D)30
• E)300

---

Definitions:

Average Cost

A financial metric calculated by dividing the total cost of goods available for sale by the total number of items available for sale, used to determine the profitability of sales.

Fixed Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs, attributed to variations in the number of units produced.

Standard Fixed Manufacturing Overhead Rate

A predetermined rate used to assign fixed manufacturing overhead costs to products based on a consistent activity base.

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs.