A Company manufactures three products P, Q and R. The cost information extracted from the companys records is provided below :

P Q R

Budgeted Production Volume (in Units) 4000 6000 2500

Direct Material Cost per unit @ RO 10per Kg 25 35 40

Labour Hours per unit 1.5 2 1

Direct Labour Cost per unit @ RO 15 per hour 22.5 30 15

Other Direct Expenses per unit 10 15 20

The companys overheads of RO 1,025,000 can be identified with five major activities. The relevant data of these activities is as follows :

Major Activities	Overheads (in RO)	Cost Driver	Activity Capacity	Product P	Product Q	Product R
Ordering Cost	200,000	No. of orders processed	2,000	400	1,200	400
Receiving Cost	150,000	Number of parts	750	250	200	300
Machining Cost	300,000	Machine Hours	30,000	7,000	9,000	14,000
Inspection Cost	125,000	Inspection Hours	1,000	200	500	300
Set-Up Costs	250,000	No. of Set-Ups	250	75	125	50
	1,025,000