A Company manufactures three products P, Q and R. The cost information extracted from the company’s records is provided below :

                                                                                 P                      Q                     R

Budgeted Production Volume (in Units)               4000                6000                2500

Direct Material Cost per unit @ RO 10per Kg     25                    35                   40

Labour Hours per unit                                           1.5                   2                      1

Direct Labour Cost per unit @ RO 15 per hour    22.5                 30                    15

Other Direct Expenses per unit                            10                    15                    20       

The company’s overheads of RO 1,025,000 can be identified with five major activities. The relevant data of these activities is as follows :

Major Activities	Overheads (in RO)	Cost Driver	Activity Capacity	Product P	Product Q	Product R
Ordering Cost	200,000	No. of orders processed	2,000	400	1,200	400
Receiving Cost	150,000	Number of parts	750	250	200	300
Machining Cost	300,000	Machine Hours	30,000	7,000	9,000	14,000
Inspection Cost	125,000	Inspection Hours	1,000	200	500	300
Set-Up Costs	250,000	No. of Set-Ups	250	75	125	50
	1,025,000

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