Calculate the overhead cost of production support activity

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Question - ABC co. has identified the following two overhead cost items and 3 activities. Two overheads are Indirect labor of Rs. 20,000 and IT support of Rs. 50,000. Three activities are production support, materials planning and machine setup. Three activities take 40%, 40% and 20% of indirect labour and 50%, 20% and 30% of IT support respectively. Calculate the overhead cost of production support activity.

a. 18,000

b. 19,000

c. 33,000

d. 52,000

Reference no: EM132715430

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