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The budgeted overheads and cost driver volumes of XYZ are as follows. Cost Pool Budgeted Overheads (RM) Material procurement 580,000 Material handling 250,000 Set-up 415,000

The budgeted overheads and cost driver volumes of XYZ are as follows.

Cost Pool

Budgeted Overheads (RM)

Material procurement

580,000

Material handling

250,000

Set-up

415,000

Maintenance

970,000

Quality control

176,000

Machinery

720,000

Cost Driver

Budgeted Volume

No. of orders

1,100

No of movements

680

No. of set ups

520

Maintenance hours

8,400

No. of inspection

900

No, of machine hours

24,000

The company has produced a batch of 2,600 components of A.X-1S, its material cost was RM 130,000 and labour cost RM 245,000.

The usage activities of the said batch are as follows.

Material orders is 26. Maintenance hours is 690. Material movements is 18. Inspection is 28.

Set ups is 25. Machine hours 1,800

A) Calculate the cost of batch of components using Activity Based Costing.

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