Question: Compute overhead rates using activity based costing Q.No. 3 Deep Manufacturers information is provided for the production of two product lines named as pen and

Compute overhead rates using activity based costing Compute overhead rates using activity based costing Q.No. 3 Deep Manufacturers information

Q.No. 3 Deep Manufacturers information is provided for the production of two product lines named as pen and pencil of a Deep manufacturers. Activity Cost (OMR) Setup 250,000 Machine maintenance 75,000 Total indirect manufacturing costs 325,000 Particulars Direct labor hours Number of setups Number of machine hours Product-pen Product- pencil 7000 3000 70 30 1,200 3.800 Total(OMR) 10,000 100 5,000

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