Given the Following MRP Matrix for Item C

question 4

Multiple Choice

Given the following MRP matrix for Item C:

If each order cost $500 and the holding cost is $0.75 per item per period,then using the Periodic Order Quantity lot sizing technique,the Planned Order Release for period 1 would be

• A)270
• B)290
• C)340
• D)560

---

Definitions:

Variable Overhead Rate Variances

The difference between the actual variable overhead incurred and the standard cost allocated, based on actual production activity.

Indirect Labor

Costs associated with employees who are not directly involved in the production of goods or services, such as maintenance and clerical staff.

Precision Drills

Specialized tools or equipment designed for creating holes with exact dimensions and tolerances.

Oil Exploration

The process of searching for underground or underwater oil reserves with the goal of drilling and extracting oil.