For supply item ABC, Andrews Company has been ordering 1 2 5 units based on the recommendation
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Question:
For supply item ABC, Andrews Company has been ordering units based on the recommendation of the salesperson who calls on the company monthly. A new purchasing agent has been hired by the company who wants to start using the economicorderquantity method and its supporting decision elements. She has gathered the following information:
Annual demand in units
Days used per year
Lead time, in days
Ordering costs
$
Annual unit carrying costs
$
Required:
Determine the EOQ, average inventory, orders per year, average daily demand, reorder point, annual ordering costs, and annual carrying costs.
Bonus
Ellen is paid $ an hour for straighttime and $ an hour for overtime. One week she worked hours, which included hours of overtime.
Required:
a What is Ellen's total compensation for the week?
b What amount of compensation would be reported as direct manufacturing labor?
c What amount of compensation would be reported as manufacturing overhead?
Related Book For
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
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