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Q2) Deep Manufacturers information is provided for the production of two product lines named as pen and pencil of a Deep manufacturers. Activity Cost (OMR)

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Q2) Deep Manufacturers information is provided for the production of two product lines named as pen and pencil of a Deep manufacturers. Activity Cost (OMR) Setup 250,000 Machine maintenance 75,000 Total indirect manufacturing costs 325,000 Particulars Product-pen Product-pencil Total OMR) Direct labor hours 7000 3000 10,000 Number of setups 70 30 100 Number of machine hours 1,200 3,800 5.000 The Deep manufactures plans to produce 500 units of pens and 1000 units of pencils. Compute the activity based cost per unit of each product

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