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    Question

    XYZ Ltd. has overheads of ₹5,00,000 allocated to 4

    activities: Machine setup (₹1,50,000), Quality control (₹1,00,000), Material handling (₹1,50,000). If Product A requires 30 setups, 50 inspections, 200 material moves, total 200 setups, 500 inspections, 1,000 moves, compute overheads allocated to Product A.
    A ₹25,000 Correct Answer Incorrect Answer
    B ₹52,000 Correct Answer Incorrect Answer
    C ₹62,500 Correct Answer Incorrect Answer
    D ₹65,000 Correct Answer Incorrect Answer
    E ₹70,000 Correct Answer Incorrect Answer

    Solution

    Rates: Setup = 1,50,000/200 = 750 per setup × 30 = 22,500. QC = 1,00,000/500 = 200 × 50 = 10,000. Material handling = 1,50,000/1,000 = 150 × 200 = 30,000. Total = 62,500.

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