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Storage costs are 25% per annum of stock value. Ordering costs are K20,000 per order. Price per unit of material is K3,200. You are required to calculate (a) Reorder level (b) Economic Order Quantity (EOQ) (c) Minimum stock level (d) Maximum stock level (e) Average stock level (2) The following information relate to product X Weeks Units Costs (3 Marks) (3 Marks) (3 Marks) (3 Marks) (3 Marks) 1 200 3,500 v 2 300 4,000 3 400 5,200 4 500 6,800 5 600 7,800 6 09 700 8,900 7 800 9,100 V Find the total costs of producing 550 units using (1) the High Low (range) method (ii) Linear Regression Method (4 Marks) (6 Marks) [Total 25 marks] LONG QUESTIONS 1. The budgeted expenses of three departments of Roja Engineering Company for the year 2020-21 are as follows: A B Direct material (K) 120,000 95,000 90,000 Direct wages (K) 115,000 80,000 80,000 Factory overheads (K) 95,000 65,000 63,750 Administrative overheads (K) 20,000 20,000 12,000 Direct labour hours 10,000 13,000 7,500 The company recovers factory overheads at direct labour rates and administration overheads as percentage of factory cost, respectively. The direct costs and labour hours incurred on job number 26 completed during the year are as follows: Department B Department A Department C Direct material (K) 6,000 5,000 4,000 Direct wages (K) 4,200 3,300 2,250 Direct labour hours 1,000 1,200 600 What price should be charged for job number 26 to include a profit of 10% on cost? 3