Sam's Cat Hotel works 52 weeks out of each year, 6 days of the week, and utilizations a constant audit stock framework. It buys kitty litter for $11.70 per sack. The accompanying data is accessible about these packs.

Request = 90 sacks/week

Request cost = $54/request

Yearly holding cost = 27% of cost

Wanted cycle@service level = 80%

Lead time = 3 weeks 118 working days2

Standard deviation of week by week interest = 15 packs

Current close by stock is 320 sacks, with no open requests or delay purchases.

a. What is the EOQ? What might be the normal time between orders (in weeks)?

b. What should R be?

c. A stock withdrawal of 10 packs was simply made. Is it an opportunity to reorder?

d. The store presently utilizes a ton size of 500 sacks (i.e., Q = 500). What is the yearly holding cost of this approach? Yearly requesting cost? Without computing the EOQ, how might you close from these two computations that the current parcel size is excessively huge?

e. What might be the yearly expense saved by moving from the 500-sack parcel size to the EOQ?

A rancher should conclude whether to make a defensive move to restrict harm to his grapefruit crop if the overnight temperature tumbles to a level well beneath freezing. On the off chance that the temperature drops too low he risks losing his whole yield, esteemed at $75,000. In view of the National Weather Service, the likelihood of such a temperature drop is 60%. He can protect his harvest by splashing water on every one of the trees, which will cost $20,000. This activity may prevail with regards to securing the yield, with the accompanying potential results:

Likelihood

Harm

0.30

$0

0.15

$5,000

0.10

$10,000

0.15

$15,000

0.30

$20,000

a. Develop a choice tree to help the rancher settle on his choice. How would it be a good idea or him to respond?

b. Track down the greatest expense of protecting the grapefruits for which the rancher likes to protect his harvest.

c. Assume the rancher is dubious about the unwavering quality of the National Weather Service estimate. On the off chance that he thinks the likelihood of a freeze happening could be anyplace somewhere in the range of 40% and 80%, would that alter his perspective?

Occupation Costing Johnson Inc. is a task request fabricating organization that uses a foreordained overhead rate

in light of direct work hours to apply overhead to singular positions. For the current year, assessed direct work

hours are 95,000 and assessed industrial facility overhead is $617,500. The accompanying data is for September

of the current year. Occupation A was finished during September, and Job B was begun however not wrapped up.

[LO 4-3, 4-4, 4-5]

September 1, Inventories

M13M

Materials Inventory $ 7,500

Work-in-Process Inventory (All Job A) 31,200

Completed Goods Inventory 67,000

Material buys 104,000

Direct materials ordered

Occupation A 65,000

Occupation B 33,500

Direct work hours

Occupation A 4,200

Occupation B 3,500

Work costs brought about

Direct work ($8.50/hour) 65,450

Circuitous work 13,500

Administrative pay rates 6,000

Rental expenses

Production line 7,000

Regulatory workplaces 1,800

Absolute hardware deterioration costs

Manufacturing plant 7,500

Regulatory workplaces 1,600

Circuitous materials utilized 12,000

Required

1. What is the absolute expense of Job A?

2. What is the all out processing plant overhead applied during September?

3. What is the overapplied or underapplied overhead for September?