## Numerical Format for ABC Problems
ABC numerical problems follow a two-step procedure.
### Step 1 — Calculate the Cost Driver Rate
| Activity | Cost Pool (₹) | Cost Driver Name | Cost Driver Qty | Cost Driver Rate |
|---|---|---|---|---|
| Machine | xxx | Machine Hours | xxx | Pool ÷ Qty |
| Setup | xxx | Setup time | xxx | Pool ÷ Qty |
| Inspection | xxx | No. of Inspections | xxx | Pool ÷ Qty |
> Cost Driver Rate (col 5) = Cost Pool (col 2) ÷ Cost Driver Quantity (col 4)
### Step 2 — Apportion Overheads to the Products
For each product, multiply the cost driver rate by the quantity of that driver the product consumes.
| Activities | P1 — Driver Qty | P1 — ₹ (CDR × Qty) | P2 — Driver Qty | P2 — ₹ (CDR × Qty) |
|---|---|---|---|---|
| Machine | xxx | xxx | xxx | xxx |
| Setup | xxx | xxx | xxx | xxx |
| Inspection | xxx | xxx | xxx | xxx |
| A. Total OH | xxx | xxx | ||
| B. Units | xxx | xxx | ||
| C. OH per unit (A ÷ B) | xxx | xxx |
> Tip: Keep Step 1 (rate per driver) and Step 2 (apply rate to each product's consumption) strictly separate. The final overhead per unit = total activity overheads for the product ÷ units produced.