The safety stock is 200 units, the supplier quotes a delivery delay of two to three weeks,
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Question:
The safety stock is 200 units, the supplier quotes a delivery delay of two to three weeks, the factory uses 400 to 700 units a week according to activity levels. Ehat is the re-order level?
2. Based on the data given below compute:
i. overhead absorption rate and
ii. The amount of under or over absorbed overhead:
Budgeted labour hours | 8500 |
Budgeted Overheads | Rs.148750 |
Actual labour hours | 7928 |
Actual Overheads | Rs.146200 |
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