Aptech Computers manufactures mouse devices for computers. They make 12 different models of mouse devices as well as several other types of computer components. They use activity based costing to assign manufacturing overheads to products. The data relating to one of their products–wireless remote mouse–and the ABC cost pools are given below.

(a) Wireless Remote Mouse: Annual production, 20,000 units; Direct materials per unit, ₹310; Direct labour per unit, ₹60.

(b) Manufacturing overhead cost pools

(c) Activity information related to cost drivers

REQUIRED:

(a) Calculate the overhead rate per unit of activity for each of the 5 cost pools.

(b) Calculate the total overhead assigned to the production of the remote mouse.

(c) Calculate the overhead cost per unit for the remote mouse.

(d) Calculate the total unit cost for the remote mouse.

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Cost pool 1 Materials ordering 2 Materials inspection Cost *80,00,000 40,00,000 3 Equipment setup 2,00,00,000 4 Quality control 90,00,000 Cost driver Number of purchase orders Number of receiving reports Number of setups Number of inspections 5 Others 15,00,00,000 Direct labour cost Total manufacturing overheads 19,10,00,000