XYZ Ltd has collected the following data for its two activities. It calculates activity cost rates based on cost-driver capacity:
| Activity: Don't use plagiarized sources. Get Your Custom Essay on discuss the factors the management considers in choosing a capacity level to compute 618495 Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! Just from $10/Page | Cost driver | Capacity | Cost (Rs.) |
| Power: | Kilowatt hours | 20,000 k.w. hrs | 1,00,000 |
| Quality inspection: | Number of inspections | 5,000 Inspection | 2,00,000 |
The company makes three products X, Y and Z. For the year ended 31 March 2010, the following consumption of cost driver was reported:
| Kilowatt | Quality | |
| Product | Hours | Inspection |
| x | 5,000 | 2,000 |
| Y | 3,000 | 1,000 |
| Z | 2,000 | 1,000 |
Required:
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