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I HAVE 2 QUESTIONS FOR YOU PLEASE
1. A COMPANY USED 25000 AT AN EVEN RATE DURING A YEAR.EACH ORDER PLACED WITH THE SUPPLIER OF THE COMPONENT IS FOR 2000 COMPONENTS. WHICH IS THE ECONOMIC ORDER QUANTITY. THE COMPANY HOLDS A BUFFER INVENTORY OF 500 COMPONENTS. THE ANNUAL COST OF HOLDING ONE COMPONENT IN INVENTORY IS $2. WHAT IS THE TOTAL ANNUAL COST OF HOLDING INVENTORY OF THE COMPONENT.
2. FOR A PARTICULAR COMPONENT THE REORDER QUANTITY IS 6000 AND THE AVERAGE INVENTORY HOLDING IS 34000. WHAT IS THE LEVEL OF SAFETY INVENTORY IN HOLDING UNITS.
3. A COMPANY OVER ABSORPTION FIXED PRODUCTION O/H FOR THE PERIOD $6000. THE FIXED PRODUCTION OVERHEAD RATE WAS $8 PER UNIT AND IS BASED ON THE ANNUAL LEVEL OF ACTIVITY OF 5000 UNITS. ACTUAL PRODUCTION WAS 4500UNITS. WHAT WAS THE ACTUAL FIXED PRODUCTION O/H INCURRED FOR THE PERIOD.
PLEASE NOTIFY ME BY EMAIL AND MY NEW EMAIL ADDRESS IS
Please do not type in capital letters, and please do not expect a reply by email – we do not offer private tuition.
You have written that you have two questions but you have actually asked three 🙂
Surely you have answers to these questions in the same book in which you found the questions (we are certainly not here to answer test questions that you may have been set)?
You should ask about whatever is confusing you in the printed answers.(I assume that you have watched our free lectures, because everything needed for these questions is covered in our lectures)
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