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Budgeted Volume 1.100 Ilustration 1 Vfhe budgeted overheads and cost driver volumes of XYZ are as follows. Cost Pool Budgeted Overheads ) Cost Driver Material procurement 5.80,000 No. of orders Material handling 2.50,000 No. of movements Set-up 4.15,000 No. of set ups Maintenance 9.70,000 Maintenance hours Quality control 1.76,000 No. of inspection Machinery 7.20,000 No. of machine hours 520 8.400 900 24.000 The company has produced a batch of 2,600 components of AX-15, its material cost was 1.30,000 and labor cost *2.45,000. The usage activities of the said batch are as follows. Material orders - 26. maintenance hours - 690, material movements - 18, inspection - 28, set ups - 25, machine hours - 1.800 Calculate - cost driver rates that are used for tracing appropriate amount of overheads to the said batch and ascertain the cost of batch of components using activity Based Costing