Q4. Strums Ltd manufactures 2 types of guitars to the extent of 1000 units of each per month. These require Direct material and Direct labour as under: Heal Direct material (Rs.-total) Direct Labour (Rs.-total) Soul 30,000 60,000 50,000 80,000 Overheads for a month amount to Rs. 1 crore which are usually allocated on the basis of direct labour cost consumed by each product. The manager feels that the current cost structure does not reflect the true cost absorbed by the products. He has collected further activity-wise information regarding the overheads which is tabulated as under: Activity head Amount Activity driver Drivers allocated to Soul 30 68 Drivers allocated to Heal 10 34 Designing Setups Rs. 18,00,000 Rs. 24,00,000 Machining Rs. 35,00,000 No. of tests No. of setups No. of machine hours No. of inspections 44,000 33,000 Quality control Rs. 23,00,000 26 20 Find out the total cost of each unit of Soul and Heal as per the existing method of costing as well as per Activity Based Costing. (5+5=10 Marks)