Escolar Documentos
Profissional Documentos
Cultura Documentos
marks: 10
Case-1
TEST
Alfa ltd. Produces a single product in its plant. This product sells for Rs.100
per unit. The standard production cost per unit is as follows:
Raw Material (5 Kgs @ Rs.8 per Kg)
Direct Labour (2 hours @ Rs 5 per hr.)
Variable manufacturing overheads
Fixed manufacturing overheads
Rs.40
Rs.10
Rs.10
Rs.20
Rs.80
The plant is currently operating at full capacity of 100000 units per year on a
single shift. This output is inadequate to meet the projected sales demand, and
the sales manager has estimated that the firm will lose sales of 40000 units next
year if the capacity is not expanded.
Anuj Verma
Anuj Verma
Case-2
The annual budget of ABC ltd. At 60% and 80% level of performance is as
under(Rs. in thousands):
Particulars
60%level
80%level
Direct material
Direct labour
Production overheads
Administrative overheads
Selling & Distributive o/h
Total
Rs.360
Rs.480
Rs.252
Rs.124
Rs.136
Rs.1352
Rs.480
Rs.640
Rs.276
Rs.132
Rs.148
Rs.1676
Anuj Verma
Anuj Verma
Max. Marks: 10
TEST
Case
Avon Garments ltd. manufactures readymade garments and uses its cut-pieces
of cloth to manufacture dolls. The following statement of cost has been
prepared:
Particulars
Readymade garments
Dolls
Total
Direct material
Rs.80000
Rs.6000
Rs.86000
Direct Labour
Rs.13000
Rs.1200
Rs.14200
Variable overheads
Rs.17000
Rs.2800
Rs.19800
Fixed overheads
Rs.24000
Rs.3000
Rs.27000
Total cost
Rs.134000
Rs.13000
Rs.147000
Sales
Rs.170000
Rs.12000
Rs.182000
Profit(Loss)
Rs.36000
Rs.(1000)
Rs.35000
The cut-pieces used in dolls have a scrap value of Rs. 1000 if sold in the
market. As there is a loss of Rs.1000 in the manufacturing of dolls, it is
suggested to discontinue their manufacturing. Advise the management?
Wednesday, April 29, 2015
Anuj Verma
Max. Marks: 10
TEST
Max. Time: 40 Mins.
Q1.The following data pertain to the shop. The owner has made the following
sales forecasts for the first 5 months of the coming year:
b) 40% of sales are on cash basis. Credit sales are collected in the month
following sales.
c) Cost of goods sold is 60% of sales.
d) The only other variable cost is a 5% commission to sales agents. The
sales commission is paid in the month after it is earned.
Wednesday, April 29, 2015
Anuj Verma
e) Inventory is kept equal to sales requirements for the next two months
budgeted sales.
f) Trade creditors are paid in the following month after purchases.
g) Fixed cost are Rs.5000 per month, including Rs.2000 depreciation.
You are required to prepare a cash budget for each of the first three
months of the coming year.
Anuj Verma
Q2. S.V.Ltd. Manufactures a single product, the standard mix of which is:
Material A 60% at Rs.20 per Kg
Material B 40% at Rs.10 per Kg
Normal loss in the production is 20% of input. Due to shortage of
material A, the standard mix was changed. Actual results for March 2000
were:
Material A
105 Kg at Rs.20 per Kg
Material B
95 Kg at Rs.9 per Kg
Input
200 Kg
Loss
35 Kg
Output
165 Kg
Calculate:
i)Material Price Variance
ii)Material Mix Variance
Anuj Verma
Anuj Verma
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The actuals which have emerged from business operations are as follows:
Anuj Verma
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Max. Marks : 10
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