Answer the following question(s) using the information below:
The Wood Furniture Company produces a specialty wood furniture product, and has the following information available concerning its inventory items:
Annual demand is 10,000 packages per year.The purchase price per package is $16.
-Wilson's Deli can predict with virtual certainty the demand for its products.Wilson's sells 20 hams per week.Purchase order lead time is 2 weeks and the economic order quantity is 50 hams.What is the reorder point?
Definitions:
Departmental Predetermined Overhead Rates
Overhead rates calculated for specific departments within a manufacturing facility, reflecting the unique costs associated with each department's operations.
Machine-Hours
A measure of the time machines are used in the production process, often used as a basis for allocating overhead costs in a manufacturing environment.
Markup
The amount added to the cost price of goods to cover overhead and profit, expressed as a percentage of the cost.
Predetermined Overhead Rate
An estimated rate used to allocate manufacturing overhead costs to individual units of production.
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