Particulars Basis Basis (in figures) Cost/basis Fringe benefits Total

Machine hours
Machinery 8000 Machine hours 10000 0.8 0 0.8
Maintainance 4000 Machine hours 10000 0.4 0 0.4
Energy 2000 Machine hours 10000 0.2 0 0.2
Total 1.4

Production runs
Indirect labour 10000 Number of runs 150 66.66666667 26.6666666667 93.33333333
Computer 8000 Number of runs 150 53.33333333 0 53.33333333
Total 146.6666667

Setup
Indirect labour 8000 Time 526 15.20912548 6.0836501901 21.29277567
Total 21.29277567

Record
Indirect labour 2000 Admin 4 500 200 700
Computer 2000 Admin 4 500 0 500
Total 1200
Particulars Blue Black Red Purple Total
Machine hours 5000 4000 900 100 10000
Rate 1.4 1.4 1.4 1.4 1.4
Total machine overhead 7000 5600 1260 140 14000

Production runs 50 50 38 12 150

Rate 146.6666667 146.6666667 146.6666667 146.6666667 146.6666667
Total production run overhead 7333.333333 7333.333333 5573.333333 1760 22000

Setup 200 50 228 48 526

Rate 21.29277567 21.29277567 21.29277567 21.29277567 21.29277567
Total setup overhead 4258.555133 1064.638783 4854.752852 1022.053232 11200

Record 1 1 1 1 4
Rate 1200 1200 1200 1200 1200
Total record overhead 1200 1200 1200 1200 4800

Direct labour 10000 8000 1800 200

Fringe benefits 4000 3200 720 80 8000
Total direct labour overhead 14000 11200 2520 280 8000

Total overhead 33791.88847 26397.97212 15408.08619 4402.053232 60000

Production sales volume x Machine hour/unit
Particulars Blue Black Red Purple Total
Production sales volume 50000 40000 9000 1000 100000
Unit selling price 1.5 1.5 1.55 1.65
Total sales 75000 60000 13950 1650 150600

Material cost/unit 0.5 0.5 0.52 0.55

Total material cost 25000 20000 4680 550 50230

Direct labour hours/unit 0.02 0.02 0.02 0.02

Total direct labour 1000 800 180 20 2000

Overhead 33792 26398 15408 4402.1 60000

Total costs 59792 47198 20268 4972.1 112230

Operating income 15208 12802 -6318 -3322 38370
Return on sales 20.28 21.34 -45.29 -201.3 25.4781