ABC Company produces two types of stereo units. Activity data follows: 

Required: 

(i). Calculate the consumption ratios for each activity. 

(ii). Group activities based on the consumption ratios and activity level. 

(iii). Calculate a rate for each pooled group of activities. 

(iv). Using the pool rates, calculate unit product costs.

Transcribed Image Text:

Activity Usage Measures Units produced per year Prime costs (Rs.) Direct labour hours Machine hours Production runs Number of moves Activity Setting up equipment Material handling Using power Testing Total Deluxe 5,000 39,000 5,000 10,000 10 120 Product-Costing Data Regular 50,000 369,000 45,000 90,000 Activity Cost Data (overhead activities) 5 60 Total 55,000 408,000 50,000 100,000 15 180 Activity Cost (Rs.) 60,000 30,000 50,000 40,000 180,000