Indiana Electronics requires a 95% service level for its 686MX computer. Average delivery lead time for the item from the supplier is 4 days and average daily demand for the item is 5 units. This implies that: a. there is a 5% chance that demand will exceed supply during the lead time.
b. there is a 5% chance that safety stock will be used during the lead time.
c. 95% of all customer orders will be filled each year.
d. a quantity equal to 95% of demand during lead time should be on hand when a reorder is placed.
d. none of the above.

Alamar petroleum company offers its employees the option of contributing retirement funds up to 5% of their wages or salaries, with the contribution being matched by alamar. the company also pays 80% of medical and life insurance premiums. deductions relating to these plans and other payroll information for the first biweekly payroll period of february are listed as follows: wages and salaries $ 2,800,000 employee contribution to voluntary retirement plan 92,000 medical insurance premiums 50,000 life insurance premiums 9,800 federal income taxes to be withheld 480,000 local income taxes to be withheld 61,000 payroll taxes: federal unemployment tax rate 0.60 % state unemployment tax rate (after futa deduction) 5.40 % social security tax rate 6.20 % medicare tax rate 1.45 % required: prepare the appropriate journal entries to record salaries and wages expense and payroll tax expense for the biweekly pay period. assume that no employee's cumulative wages exceed the relevant wage bases for social security, and that all employees' cumulative wages do exceed the relevant unemployment wage bases.