. (a)The following data are available in respect of material ZM – 3 : Storage costs are 25% of stock value. Ordering costs are Rs. 200 per order. Price per unit of material Rs. 32 Compute: (i) Reorder level (ii) Minimum Stock level (iii) Maximum Stock level (b) Explain the principles of apportionment of factory overheads with example. (
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Explanation:
- re order level =maximum consumption x maximum re-order period =300x 4=1200unit
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