7. ABC co. has identified the following two overhead cost items and 3 activities. Two overheads are Indirect labor of Rs. 20,000 and IT support of Rs. 50,000. Three activities are production support, materials planning and machine setup. Three activities take 40%, 40% and 20% of indirect labour and 50%,20% and 30% of IT support respectively. If the cost driver for calculate cost per unit of cost driver for machine set up was setup time and total machine setup hours were 3,800 hours, calculate the cost per machine set up hour.

Rs. 8.68 per set up hour

Rs. 5 per set up hour

Rs. 2.63 per set up hour

Rs. 18.42 per set up hour