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

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

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:image text in transcribed

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).

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