The budgeted overheads and cost driver volumes of XYZ are as follows.
|
Cost Pool |
Budgeted |
Cost Driver |
Budgeted Volume |
|
Material procurement |
5,80,000 |
No. of orders |
1,100 |
|
Material handling |
2,50,000 |
No. of movements |
680 |
|
Set-up |
4,15,000 |
No. of set ups |
520 |
|
Maintenance |
9,70,000 |
Maintenance hours |
8,400 |
|
Quality control |
1,76,000 |
No. of inspection |
900 |
|
Machinery |
7,20,000 |
No. of machine hours |
24,000 |
The company has produced a batch of 2,600 components of AX-15, its material cost was Rs. 1,30,000 and labor cost Rs. 2,45,000. The usage activities of the said batch are as follows.
Material orders & 26, maintenance hours & 690, material movements & 18, inspection & 28, set ups & 25, machine hours & 1,800
Calculate & cost driver rates that are used for tracing appropriate amount of overheads to the said batch and ascertain the cost of batch of components using Activity Based Costing.