The safety stock is 200 units, the supplier quotes a delivery delay of two to three weeks, the factory uses 400 to 700 units a week according to activity levels. Ehat is the re-order level?

2. Based on the data given below compute:

i. overhead absorption rate and

ii. The amount of under or over absorbed overhead:

Budgeted labour hours	8500
Budgeted Overheads	Rs.148750
Actual labour hours	7928
Actual Overheads	Rs.146200