Al Murabaa Ltd designs and produces vehicle parts. Al Murabaa using a simple normal costing system allocates manufacturing overhead to its three customers based on machine hours.

The controller of Al Murabaa Ltd, Mohamed Mesfer who has recently completed studies from UAE University is unhappy with the simple costing system and decides to implement an Activity Based Costing System. He knows that there are three main activities that consume overhead resources: design, production, and engineering. He collects the following data: