Q.
1 Solve ( 1 out of 2 )
A) Kohler & Co.manufacturers a single product at a marginal cost of ₹120,
having selling price of ₹200 & bears fixed costs of ₹8,000 annually.
a) Contribution Per Unit ;
b) Profit - Volume ratio ;
c) Break - Even point both in units & value ;
d) Profit at a sales of 300 units ;
e) Sales required to earn a profit or ₹32,000
f) Margin of safety ( in units,value and percentage ) at 200 units ;
g) Revised break - even sales (units & ') if selling price is reduced by 10%
OR
B) From the following particulars,you are required to calculate
a) P/V.Ratio
b) B.E.P. for Sales
c) Margin of safety
d) Profit when sales are ₹2,00,000
e) Sales required to earn net profit of ₹40,000
Year. Sales(₹). Profit(₹). Units
l. 2,40,000. 18,000. 24,000
ll 2,80,000. 26,000. 28,000
Q.2 Solve. ( 1 out of 2 )
A) A manufacturing company uses the following standard mix of their
compound in one batch of 100 kgs of its production line :
50 kgs of material X at the standard price of ₹ 2.
30 kgs of material Y at the standard price of ₹ 3.
20 kgs of material Z at the standard price of ₹ 4.
The actual mix for a batch of 120 kgs was as follows:
60 kgs of material X at the price of ₹ 3.
40 kgs of material Y at the price of ₹ 2.5.
10 kgs of material Z at the price of ₹ 3.
Calculate the different material variances
OR
B) Vinay Ltd.produces an article by blending three basic raw materials it
operates a standard costing system and the following standards have
been set for materials
Materials Standard Mix.(%). Standard price per Kg. ₹
A. 25. 8.80
B. 35. 10.60
C. 40. 12.90
The standard loss in processing is 20%.
During the month of August 2023,company produced 12,000 kgs of
finished output.
The actual consumption of materials is as under
Materials. Quantity. Actual Price Per Kg. ₹
A. 3,600. 8.70
B. 5,200. 10.80
C. 5,900. 13.10
You are required to prepare
a) Material Cost Variance
b) Material Price Variance
c) Material Usage Varience
d) Material Mixed Varience
e) Material Yield Variance
Q.3 Solve.( 1 out of 2 )
A) ABC manufacturing company produces 7,500 units by utilising its 75%
capacity,supplies you the following cost information
Particulars
Direct Materials
Direct Labour
Direct Expenses
Factory Overheads
Office Overheads
Selling Overheads
Additional Information
a) Direct material,direct labour and direct expenses are variable costs
b) Factory overheads per unit increases by 10%,if capacity utilisation goes
below the 75% and decreases by 15% if capacity utilization goes up
above the 75%
c) Office overheads are fixed overheads
d) Selling overheads per unit increases by 20% if capacity utilisation goes
down below 75% and decreases by 25% if capacity utilisation goes up
above the 75%.
e) It is the policy of the company to charge profit at 20% on selling price
You are required to prepare a flexible budget at 50%,75% and 100%
capacity utilisation
OR
A factory is currently working at 50% capacity and produces 10,000
B) units
Prepare a flexible budget and estimate the profits of the company when
it works at 60% and 80% capacity and advise the company.At 60%
working Raw Material Cost increases by 2% and selling price falls by
2%.At 80% Ram Material Cost increases by 5% and selling price falls by
5%.At 50% capacity working the product costs ₹180 per unit and is sold
at ₹200 per unit.
The unit cost of ₹180 is made up as follows:
Material
Labour
Factory Overheads
Administrative Overheads
Also find out Break Even Point at the above stated capacity utilisation
Q.4 Solve.( 1 out of 2 )
A) Solve
Mr.Sanjay owns a fleet of taxis and the following information is avilable
from the records maintained by him.
Number of taxis 10
Cost of each taxi. ₹54600
Salary to Manager. ₹700 p.m.
Salary to Accountant. ₹500 p.m.
Salary to Cleaner. ₹200 p.m.
Salary to Mechanic ₹400 p.m.
Garage Rent ₹600 p.m.
Annual Tax. ₹900 per taxi
Driver's Salary. ₹350 per taxi
Annual Repairs. ₹1,000
Inshurance Premium. 5% p.a.
Total life of a taxi is above 2,00,000 kms.A taxi runs 3,000
kms.In a month and 30% this distance is run without any
passangers.Petrol consumption is 1 litre for every 10 kms. @ ₹4.41 per
litre. Oil and sundry expenses are ₹10.50 per 100 kms.
Calculate the cost of running a taxi per effective km.
OR
B) Write Short notes.(3 out of 4 )
a) Define-
i) P/V Ratio
ii) Margin of Safety
iii) Important factors in marginal costing decisions
iv) Marginal Cost
b) Explain Material Variances
c) Difference between Cash Budget and Flexible Budget
d) Application of Operating Costing
14 Marks
12. Marks
l
ce per Kg. ₹
8.80
10.60
12.90
12 Marks
₹
750,000
600,000
300,000
450,000
300,000
150,000
₹ 100
₹ 30
₹30 ( 40% fixed )
₹20 ( 50% fixed )
12 Marks
