Q$.$ No$.2($a$).$ A manufacturing company manufacturers three product namely: A$,$ B and C$.$ The detail regarding

products and cost are summarised in the following table :

Further Information:

$($i$)$ Direct Labour Cost per Hour : Rs$.4$

$($ii$)$ Overhead Cost: Repairs and Maintenance Rs$.1,02,000$

Set$-$up Cost Rs$.90,000$

Scheduling Cost Rs$.45,000$

Indirect Labour $,$ Rs$.1,38,000$

Rs$.3,75,000$

$($iii$)$ Cost absorption statement under ABC system using the following cost driver:

Indirect Labour DLH

Scheduling Cost Production Runs

Set$-$up Cost Production Runs

Maintenance Machine Hours

Required ${?}_{(}())$

$($a$)$ Briefly explain about activity$-$based costing

$($b$)$ Find out production cost in total and per unit basis applying traditional costing approach costing

using a labour hour overhead absorption rate

$($c$)$ Find out production cost in total and per unit basis applying activity$-$based costing approach

$($d$)$ What were the two circumstances where traditional and Activity Based Costing would likely yield

similar or equal overhead costs?