Which Is the Most Comprehensive Solution for a Firm If

question 17

Multiple Choice

Which is the most comprehensive solution for a firm if a load report shows not enough capacity is available?

• A) Revise the bill of materials (BOM) and increase capacity.
• B) Change the action bucket.
• C) Change the master production schedule (MPS) and add capacity.
• D) Rerun materials requirements planning (MRP).

---

Definitions:

Overapplied Manufacturing Overhead

A condition where the allocated manufacturing overhead costs exceed the actual overhead expenses incurred.

Cost of Goods Sold

Cost of goods sold represents the direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or jobs, computed before the costs are incurred, based on estimated rather than actual costs.

Direct Labor-Hour

Direct labor-hour is a measure of the time workers spend on specific tasks directly involved in the production of goods.