· ution

m
riis"ftau~ 1

'ht budgeted overheads and cost driver volumes ofXYZ Ltd. arc as follows:
:ost pool
Budgeted Cost driver
overhead (?) Budgeted
1,,,,;,1 P'OCUnemcnt S.80.000 No. of o,de,s volume
1;100
,.,.,;,, haodliog 2,50,000 No. of movement, 680
"'P 4,15,000 No. of setups 520
l,;n,cn,oc, 9,70,000 Maioteoance hou,s 8,400
"Uty cont,ol 1,76,000 No. oHospectioo, 900
la<h;ne,y 7,20,000 No. of machine hou,s 24,000

be company hu prnduccd a batch of 2,600 components of AX-15, it; mate,W cost was f 1,30,000 and labou, eost
as f 2,45,000. The usage activities of the said batch are as follows:
----------------------------:-------------
:aterial orders 26 Maintenance hours
.aterial movements
690
:tups 18 Inspection
28

"\ 25 Machine hours

1,800

R
) ·Calculate
(equ1ted·• cost driver th · b
. rates th at arc used for tracing appropriate amount of overheads to e said atch.
I
. the cost of batch of components using ABC.
a Ascertain
(b)
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