The Delhi Manufacturers Ltd. (DML) manufactures two products. Their estimated unit cost and production data are summarised below:

The manufacturing support costs are estimated to be ₹2,61,40,000 for the current year. The activity cost pools and cost drivers are as given below:

REQUIRED:

(a) Estimate the manufacturing cost per unit of each product if support costs are assigned to products using activity-based cost driver rates based on practical capacity.

(b) Compute the variance/difference between the estimated manufacturing support costs and the support costs assigned to DML’s products in (a).

Transcribed Image Text:

Item Direct material cost Direct labour cost (48 per hour) Estimated production (units) Product D1 D2 120 180 96 240 4,00,000 1,50,000