Download JNTUH (Jawaharlal Nehru Technological University Hyderabad) MBA Third Year (3rd Year) 2018 Jan Stratgic Management Accounting Question Paper.
.
.
MBAIIISemesterEndExaminations(Regular)-January,2018
Regulation: .?R16
StratgicManagementAccounting
(MASTEROFBUSINESSMANAGEMENT)
Time: 3Hours MaxMarks: 70
AnswerONEQuestionfromeachUnit
AllQuestionsCarryEqualMarks
Allpartsofthequestionmustbeansweredinoneplaceonly
UNIT?I
1. (a) ?Costaccountingissuperiorto?nancialaccountingforthedevelopmentofthebusinessenter-
prises?.Doyouagree?Discuss. [7M]
(b) ThefollowingparticularshavebeenextractedasshowninTable1fromMayurLtd.,fortheyear
2005. [7M]
Table1
Particulars ProductionDepartment ServiceDepartment
A B C P Q
Directmaterial(Rs.) 30000 45000 60000 25000 35000
Directlabor(Rs.) 15000 30000 30000 30000 30000
Sta?Number 1500 2250 2250 750 750
Electricity(kwh) 6000 4500 3000 1500 1500
Assetvalue(Rs) 60000 40000 30000 10000 10000
Lightpoints(Numbers) 10 16 4 6 4
Area(Sqmts) 150 250 50 50 50
Theexpensesfortheperiodwereasfollowsin(Rs.)asshowninTable2.
Table2
Power 1100 Lighting 200
Storesoverhead 800 Welfaretosta? 3000
Depreciation 30000 Repairs 6000
Generaloverheads 12000 Rentandtaxes 550
Page1of5
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HallTicketNo QuestionPaperCode:CMB405
.
.
MBAIIISemesterEndExaminations(Regular)-January,2018
Regulation: .?R16
StratgicManagementAccounting
(MASTEROFBUSINESSMANAGEMENT)
Time: 3Hours MaxMarks: 70
AnswerONEQuestionfromeachUnit
AllQuestionsCarryEqualMarks
Allpartsofthequestionmustbeansweredinoneplaceonly
UNIT?I
1. (a) ?Costaccountingissuperiorto?nancialaccountingforthedevelopmentofthebusinessenter-
prises?.Doyouagree?Discuss. [7M]
(b) ThefollowingparticularshavebeenextractedasshowninTable1fromMayurLtd.,fortheyear
2005. [7M]
Table1
Particulars ProductionDepartment ServiceDepartment
A B C P Q
Directmaterial(Rs.) 30000 45000 60000 25000 35000
Directlabor(Rs.) 15000 30000 30000 30000 30000
Sta?Number 1500 2250 2250 750 750
Electricity(kwh) 6000 4500 3000 1500 1500
Assetvalue(Rs) 60000 40000 30000 10000 10000
Lightpoints(Numbers) 10 16 4 6 4
Area(Sqmts) 150 250 50 50 50
Theexpensesfortheperiodwereasfollowsin(Rs.)asshowninTable2.
Table2
Power 1100 Lighting 200
Storesoverhead 800 Welfaretosta? 3000
Depreciation 30000 Repairs 6000
Generaloverheads 12000 Rentandtaxes 550
Page1of5
ApportiontheexpensesofservicedepartmentQaccordingtodirectwagesandthoseofservice
departmentPintheratioof5:3:2totheproductiondepartments.
2. (a) ?Costingsystemhasbecomeanessentialtoolinthehandsofmanagement?Elucidatethestate-
mentusingvarioustechniquesofcosting. [7M]
(b) Computethemachinehourratefromthefollowingdata: [7M]
i. TotalmachinecosttobedepreciatedRs.2,30,000
ii. Life:10years
iii. Depreciationonstraightline
iv. Departmental overheads (Annual): Rent Rs.50,000 heatandlightRs.20,000 supervision
Rs.1,30,000
v.Departmentalarea70000Sqfeet
vi.Machinearea2500sqfeet,26machinesinthedepartment
vii.AnnualcostofreserveequipmentforthemachinesRs.1,500
viii.Hoursrunonproduction1800
ix.Hoursforsettingandadjusting200
x.PowercostRs.0.50perhourforrunningtime
xi.Labour:
i.Whensettingandadjustingfulltimeattention
ii.Whenmachineisproducingonemancanlookafterthreemachines
xii.LabourrateRs.6perhour
UNIT?II
3. (a)Fromthefollowinginformation,giveninTable3prepareastatementofcostforthemonthof
August,2015. [7M]
Table3
Particulars 01.08.2015 31.08.2015
Rawmaterials Rs.40000 Rs.25000
WIP Rs.32000 Rs.18000
Finishedgoods 3000Units@Rs.20/unit 2000units
Purchaseofrawmaterials Rs.55000
Directwages Rs.35000
Directexpenses Rs.20000
Worksoverhead Rs.50000
Administrativeoverheads Rs.30000
Sellinganddistributionoverhead Rs.5perunitsold
Saleofscrap Rs.5000
Sales 9000units
Pro?t 20%onsales
Page2of5
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HallTicketNo QuestionPaperCode:CMB405
.
.
MBAIIISemesterEndExaminations(Regular)-January,2018
Regulation: .?R16
StratgicManagementAccounting
(MASTEROFBUSINESSMANAGEMENT)
Time: 3Hours MaxMarks: 70
AnswerONEQuestionfromeachUnit
AllQuestionsCarryEqualMarks
Allpartsofthequestionmustbeansweredinoneplaceonly
UNIT?I
1. (a) ?Costaccountingissuperiorto?nancialaccountingforthedevelopmentofthebusinessenter-
prises?.Doyouagree?Discuss. [7M]
(b) ThefollowingparticularshavebeenextractedasshowninTable1fromMayurLtd.,fortheyear
2005. [7M]
Table1
Particulars ProductionDepartment ServiceDepartment
A B C P Q
Directmaterial(Rs.) 30000 45000 60000 25000 35000
Directlabor(Rs.) 15000 30000 30000 30000 30000
Sta?Number 1500 2250 2250 750 750
Electricity(kwh) 6000 4500 3000 1500 1500
Assetvalue(Rs) 60000 40000 30000 10000 10000
Lightpoints(Numbers) 10 16 4 6 4
Area(Sqmts) 150 250 50 50 50
Theexpensesfortheperiodwereasfollowsin(Rs.)asshowninTable2.
Table2
Power 1100 Lighting 200
Storesoverhead 800 Welfaretosta? 3000
Depreciation 30000 Repairs 6000
Generaloverheads 12000 Rentandtaxes 550
Page1of5
ApportiontheexpensesofservicedepartmentQaccordingtodirectwagesandthoseofservice
departmentPintheratioof5:3:2totheproductiondepartments.
2. (a) ?Costingsystemhasbecomeanessentialtoolinthehandsofmanagement?Elucidatethestate-
mentusingvarioustechniquesofcosting. [7M]
(b) Computethemachinehourratefromthefollowingdata: [7M]
i. TotalmachinecosttobedepreciatedRs.2,30,000
ii. Life:10years
iii. Depreciationonstraightline
iv. Departmental overheads (Annual): Rent Rs.50,000 heatandlightRs.20,000 supervision
Rs.1,30,000
v.Departmentalarea70000Sqfeet
vi.Machinearea2500sqfeet,26machinesinthedepartment
vii.AnnualcostofreserveequipmentforthemachinesRs.1,500
viii.Hoursrunonproduction1800
ix.Hoursforsettingandadjusting200
x.PowercostRs.0.50perhourforrunningtime
xi.Labour:
i.Whensettingandadjustingfulltimeattention
ii.Whenmachineisproducingonemancanlookafterthreemachines
xii.LabourrateRs.6perhour
UNIT?II
3. (a)Fromthefollowinginformation,giveninTable3prepareastatementofcostforthemonthof
August,2015. [7M]
Table3
Particulars 01.08.2015 31.08.2015
Rawmaterials Rs.40000 Rs.25000
WIP Rs.32000 Rs.18000
Finishedgoods 3000Units@Rs.20/unit 2000units
Purchaseofrawmaterials Rs.55000
Directwages Rs.35000
Directexpenses Rs.20000
Worksoverhead Rs.50000
Administrativeoverheads Rs.30000
Sellinganddistributionoverhead Rs.5perunitsold
Saleofscrap Rs.5000
Sales 9000units
Pro?t 20%onsales
Page2of5
(b)Howdoyoudi?erentiatebetween?xedcostsandvariablecosts?Whatismeantbysemi-variable
costs?Giveexample. [7M]
4. (a)Discussthemainfeaturesofprocesscosting?Underwhatsituationsthismethodisuseful?[7M]
(b)The?nishedproductofamanufacturingcompanypassesthroughthreeprocesses.viz.,I,II&III.
TheNormalwastageineachprocessis5%,7%and10%fortheprocessesI,II&IIIrespectively
(calculatedwithreferencetothenumberofunitsfedintoeachprocess).Thescrapgeneratedout
ofwastagehasasalevalueof70paiseperunit,80paiseperunitandRupee1perunitinthe
processesI,II&IIIrespectively. Theoutputofeachprocessistransferredtothenextprocess
andthe?nishedoutputemergesfromtheprocessIIIaretransferredtostock.Therewasnostock
ofWIPinanyprocessinaparticularmonth.Thedetailsofcostdataforthemonthareasgiven
inTable4: [7M]
Table4
Particulars Processes
I II III
Materialsused(Rs.) 120000 40000 40000
Directlabourcost(Rs) 80000 60000 60000
Productionexpenses(Rs.) 40000 40000 28000
Outputinunits(actual) 38000 34600 32000
ProcessI wasfed with40000 units ofrawinput atcost of Rs.3,20,000.Preparethe process
accounts.
UNIT?III
5. (a)Fromthefollowingdata,giveninTable5youarerequiredtocalculatebreakevenpointandnet
salevalueatthispoint. [7M]
Table5
Particulars Rs.
Directmaterialcostperunit 10
Directlaborcostperunit 5
Fixedoverhead 50000
VariableOverheads@60%ondirectlabour
Sellingpriceperunit 25
Tradediscount 4%
Ifsalesare10%and25%abovethebreakevenvolume,determinethenetpro?ts.
(b)Brie?yexplainthemanagerialapplicationsofmarginalcosting. [7M]
6. (a)If selling price Rs.20 per unit, variable manufacturing cost Rs.11 per unit, ?xed overheads
Rs.5,40,000peryearcompute
Page3of5
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HallTicketNo QuestionPaperCode:CMB405
.
.
MBAIIISemesterEndExaminations(Regular)-January,2018
Regulation: .?R16
StratgicManagementAccounting
(MASTEROFBUSINESSMANAGEMENT)
Time: 3Hours MaxMarks: 70
AnswerONEQuestionfromeachUnit
AllQuestionsCarryEqualMarks
Allpartsofthequestionmustbeansweredinoneplaceonly
UNIT?I
1. (a) ?Costaccountingissuperiorto?nancialaccountingforthedevelopmentofthebusinessenter-
prises?.Doyouagree?Discuss. [7M]
(b) ThefollowingparticularshavebeenextractedasshowninTable1fromMayurLtd.,fortheyear
2005. [7M]
Table1
Particulars ProductionDepartment ServiceDepartment
A B C P Q
Directmaterial(Rs.) 30000 45000 60000 25000 35000
Directlabor(Rs.) 15000 30000 30000 30000 30000
Sta?Number 1500 2250 2250 750 750
Electricity(kwh) 6000 4500 3000 1500 1500
Assetvalue(Rs) 60000 40000 30000 10000 10000
Lightpoints(Numbers) 10 16 4 6 4
Area(Sqmts) 150 250 50 50 50
Theexpensesfortheperiodwereasfollowsin(Rs.)asshowninTable2.
Table2
Power 1100 Lighting 200
Storesoverhead 800 Welfaretosta? 3000
Depreciation 30000 Repairs 6000
Generaloverheads 12000 Rentandtaxes 550
Page1of5
ApportiontheexpensesofservicedepartmentQaccordingtodirectwagesandthoseofservice
departmentPintheratioof5:3:2totheproductiondepartments.
2. (a) ?Costingsystemhasbecomeanessentialtoolinthehandsofmanagement?Elucidatethestate-
mentusingvarioustechniquesofcosting. [7M]
(b) Computethemachinehourratefromthefollowingdata: [7M]
i. TotalmachinecosttobedepreciatedRs.2,30,000
ii. Life:10years
iii. Depreciationonstraightline
iv. Departmental overheads (Annual): Rent Rs.50,000 heatandlightRs.20,000 supervision
Rs.1,30,000
v.Departmentalarea70000Sqfeet
vi.Machinearea2500sqfeet,26machinesinthedepartment
vii.AnnualcostofreserveequipmentforthemachinesRs.1,500
viii.Hoursrunonproduction1800
ix.Hoursforsettingandadjusting200
x.PowercostRs.0.50perhourforrunningtime
xi.Labour:
i.Whensettingandadjustingfulltimeattention
ii.Whenmachineisproducingonemancanlookafterthreemachines
xii.LabourrateRs.6perhour
UNIT?II
3. (a)Fromthefollowinginformation,giveninTable3prepareastatementofcostforthemonthof
August,2015. [7M]
Table3
Particulars 01.08.2015 31.08.2015
Rawmaterials Rs.40000 Rs.25000
WIP Rs.32000 Rs.18000
Finishedgoods 3000Units@Rs.20/unit 2000units
Purchaseofrawmaterials Rs.55000
Directwages Rs.35000
Directexpenses Rs.20000
Worksoverhead Rs.50000
Administrativeoverheads Rs.30000
Sellinganddistributionoverhead Rs.5perunitsold
Saleofscrap Rs.5000
Sales 9000units
Pro?t 20%onsales
Page2of5
(b)Howdoyoudi?erentiatebetween?xedcostsandvariablecosts?Whatismeantbysemi-variable
costs?Giveexample. [7M]
4. (a)Discussthemainfeaturesofprocesscosting?Underwhatsituationsthismethodisuseful?[7M]
(b)The?nishedproductofamanufacturingcompanypassesthroughthreeprocesses.viz.,I,II&III.
TheNormalwastageineachprocessis5%,7%and10%fortheprocessesI,II&IIIrespectively
(calculatedwithreferencetothenumberofunitsfedintoeachprocess).Thescrapgeneratedout
ofwastagehasasalevalueof70paiseperunit,80paiseperunitandRupee1perunitinthe
processesI,II&IIIrespectively. Theoutputofeachprocessistransferredtothenextprocess
andthe?nishedoutputemergesfromtheprocessIIIaretransferredtostock.Therewasnostock
ofWIPinanyprocessinaparticularmonth.Thedetailsofcostdataforthemonthareasgiven
inTable4: [7M]
Table4
Particulars Processes
I II III
Materialsused(Rs.) 120000 40000 40000
Directlabourcost(Rs) 80000 60000 60000
Productionexpenses(Rs.) 40000 40000 28000
Outputinunits(actual) 38000 34600 32000
ProcessI wasfed with40000 units ofrawinput atcost of Rs.3,20,000.Preparethe process
accounts.
UNIT?III
5. (a)Fromthefollowingdata,giveninTable5youarerequiredtocalculatebreakevenpointandnet
salevalueatthispoint. [7M]
Table5
Particulars Rs.
Directmaterialcostperunit 10
Directlaborcostperunit 5
Fixedoverhead 50000
VariableOverheads@60%ondirectlabour
Sellingpriceperunit 25
Tradediscount 4%
Ifsalesare10%and25%abovethebreakevenvolume,determinethenetpro?ts.
(b)Brie?yexplainthemanagerialapplicationsofmarginalcosting. [7M]
6. (a)If selling price Rs.20 per unit, variable manufacturing cost Rs.11 per unit, ?xed overheads
Rs.5,40,000peryearcompute
Page3of5
i.BEPinamountofsalesinrupees
ii.No.ofunitsthatmustbesoldtoearnapro?tofRs.60,000 [7M]
(b)Distinguishbetweenmarginalcostingandabsorptioncosting. [7M]
UNIT?IV
7. (a)Theexpensesfortheproductionof5000unitsinafactoryaregiveninTable6asfollows:[7M]
Table6
Particulars Rs. perunit
Materials 50
Labour 20
Variableoverheads 15
Fixedoverheads(Rs.50000) 10
Administrativeexpenses(20%variable) 10
Sellingexpenses(20%?xed) 6
Distributionexpenses(10%?xed) 5
Totalcostofsalesperunit 116
Youarerequiredtoprepareabudgetfortheproductionof8000Units.
(b)Distinguishbetweencostauditand?nancialaudit [7M]
8. (a)ABCInternationalschoolhasatotalof150studentsconsistingof5sectionswith30students
persection.TheschoolplansforapicnicaroundMysorecityduringtheweekendtoplacessuch
astheZoo,theamusementpark,theplanetariumetc. Aprivatetransportoperatorhascome
forwardtoleaseoutthebusesfortakingthestudents.Eachbuswillhaveamaximumcapacity
of50(excluding2seatsreservedfortheteachersaccompanyingthestudents). Theschoolwill
employtwoteachesforeachbus,payingthemanallowancesofRs.250perteacher.Itwillalso
leaseouttherequirednumberofbuses. ThefollowingaretheotherestimatesgiveninTable7:
[7M]
Table7
Particulars Costperstudent
Breakfast Rs.25
Lunch Rs.50
Tea Rs.10
EntrancefeeatZ00 Rs.5
RentRs.10650perbus.SpecialpermitfeeRs.500perbus.Blockentrancefeefortheentireteam
attheplanetariumRs. 2520.PrizetoallthestudentsforgamesRs. 2500.Nocostsareincurred
inrespectoftheaccompanyingteachers(excepttheallowanceofRs.250perteacher).
Youarerequiredtoprepare:
Page4of5
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HallTicketNo QuestionPaperCode:CMB405
.
.
MBAIIISemesterEndExaminations(Regular)-January,2018
Regulation: .?R16
StratgicManagementAccounting
(MASTEROFBUSINESSMANAGEMENT)
Time: 3Hours MaxMarks: 70
AnswerONEQuestionfromeachUnit
AllQuestionsCarryEqualMarks
Allpartsofthequestionmustbeansweredinoneplaceonly
UNIT?I
1. (a) ?Costaccountingissuperiorto?nancialaccountingforthedevelopmentofthebusinessenter-
prises?.Doyouagree?Discuss. [7M]
(b) ThefollowingparticularshavebeenextractedasshowninTable1fromMayurLtd.,fortheyear
2005. [7M]
Table1
Particulars ProductionDepartment ServiceDepartment
A B C P Q
Directmaterial(Rs.) 30000 45000 60000 25000 35000
Directlabor(Rs.) 15000 30000 30000 30000 30000
Sta?Number 1500 2250 2250 750 750
Electricity(kwh) 6000 4500 3000 1500 1500
Assetvalue(Rs) 60000 40000 30000 10000 10000
Lightpoints(Numbers) 10 16 4 6 4
Area(Sqmts) 150 250 50 50 50
Theexpensesfortheperiodwereasfollowsin(Rs.)asshowninTable2.
Table2
Power 1100 Lighting 200
Storesoverhead 800 Welfaretosta? 3000
Depreciation 30000 Repairs 6000
Generaloverheads 12000 Rentandtaxes 550
Page1of5
ApportiontheexpensesofservicedepartmentQaccordingtodirectwagesandthoseofservice
departmentPintheratioof5:3:2totheproductiondepartments.
2. (a) ?Costingsystemhasbecomeanessentialtoolinthehandsofmanagement?Elucidatethestate-
mentusingvarioustechniquesofcosting. [7M]
(b) Computethemachinehourratefromthefollowingdata: [7M]
i. TotalmachinecosttobedepreciatedRs.2,30,000
ii. Life:10years
iii. Depreciationonstraightline
iv. Departmental overheads (Annual): Rent Rs.50,000 heatandlightRs.20,000 supervision
Rs.1,30,000
v.Departmentalarea70000Sqfeet
vi.Machinearea2500sqfeet,26machinesinthedepartment
vii.AnnualcostofreserveequipmentforthemachinesRs.1,500
viii.Hoursrunonproduction1800
ix.Hoursforsettingandadjusting200
x.PowercostRs.0.50perhourforrunningtime
xi.Labour:
i.Whensettingandadjustingfulltimeattention
ii.Whenmachineisproducingonemancanlookafterthreemachines
xii.LabourrateRs.6perhour
UNIT?II
3. (a)Fromthefollowinginformation,giveninTable3prepareastatementofcostforthemonthof
August,2015. [7M]
Table3
Particulars 01.08.2015 31.08.2015
Rawmaterials Rs.40000 Rs.25000
WIP Rs.32000 Rs.18000
Finishedgoods 3000Units@Rs.20/unit 2000units
Purchaseofrawmaterials Rs.55000
Directwages Rs.35000
Directexpenses Rs.20000
Worksoverhead Rs.50000
Administrativeoverheads Rs.30000
Sellinganddistributionoverhead Rs.5perunitsold
Saleofscrap Rs.5000
Sales 9000units
Pro?t 20%onsales
Page2of5
(b)Howdoyoudi?erentiatebetween?xedcostsandvariablecosts?Whatismeantbysemi-variable
costs?Giveexample. [7M]
4. (a)Discussthemainfeaturesofprocesscosting?Underwhatsituationsthismethodisuseful?[7M]
(b)The?nishedproductofamanufacturingcompanypassesthroughthreeprocesses.viz.,I,II&III.
TheNormalwastageineachprocessis5%,7%and10%fortheprocessesI,II&IIIrespectively
(calculatedwithreferencetothenumberofunitsfedintoeachprocess).Thescrapgeneratedout
ofwastagehasasalevalueof70paiseperunit,80paiseperunitandRupee1perunitinthe
processesI,II&IIIrespectively. Theoutputofeachprocessistransferredtothenextprocess
andthe?nishedoutputemergesfromtheprocessIIIaretransferredtostock.Therewasnostock
ofWIPinanyprocessinaparticularmonth.Thedetailsofcostdataforthemonthareasgiven
inTable4: [7M]
Table4
Particulars Processes
I II III
Materialsused(Rs.) 120000 40000 40000
Directlabourcost(Rs) 80000 60000 60000
Productionexpenses(Rs.) 40000 40000 28000
Outputinunits(actual) 38000 34600 32000
ProcessI wasfed with40000 units ofrawinput atcost of Rs.3,20,000.Preparethe process
accounts.
UNIT?III
5. (a)Fromthefollowingdata,giveninTable5youarerequiredtocalculatebreakevenpointandnet
salevalueatthispoint. [7M]
Table5
Particulars Rs.
Directmaterialcostperunit 10
Directlaborcostperunit 5
Fixedoverhead 50000
VariableOverheads@60%ondirectlabour
Sellingpriceperunit 25
Tradediscount 4%
Ifsalesare10%and25%abovethebreakevenvolume,determinethenetpro?ts.
(b)Brie?yexplainthemanagerialapplicationsofmarginalcosting. [7M]
6. (a)If selling price Rs.20 per unit, variable manufacturing cost Rs.11 per unit, ?xed overheads
Rs.5,40,000peryearcompute
Page3of5
i.BEPinamountofsalesinrupees
ii.No.ofunitsthatmustbesoldtoearnapro?tofRs.60,000 [7M]
(b)Distinguishbetweenmarginalcostingandabsorptioncosting. [7M]
UNIT?IV
7. (a)Theexpensesfortheproductionof5000unitsinafactoryaregiveninTable6asfollows:[7M]
Table6
Particulars Rs. perunit
Materials 50
Labour 20
Variableoverheads 15
Fixedoverheads(Rs.50000) 10
Administrativeexpenses(20%variable) 10
Sellingexpenses(20%?xed) 6
Distributionexpenses(10%?xed) 5
Totalcostofsalesperunit 116
Youarerequiredtoprepareabudgetfortheproductionof8000Units.
(b)Distinguishbetweencostauditand?nancialaudit [7M]
8. (a)ABCInternationalschoolhasatotalof150studentsconsistingof5sectionswith30students
persection.TheschoolplansforapicnicaroundMysorecityduringtheweekendtoplacessuch
astheZoo,theamusementpark,theplanetariumetc. Aprivatetransportoperatorhascome
forwardtoleaseoutthebusesfortakingthestudents.Eachbuswillhaveamaximumcapacity
of50(excluding2seatsreservedfortheteachersaccompanyingthestudents). Theschoolwill
employtwoteachesforeachbus,payingthemanallowancesofRs.250perteacher.Itwillalso
leaseouttherequirednumberofbuses. ThefollowingaretheotherestimatesgiveninTable7:
[7M]
Table7
Particulars Costperstudent
Breakfast Rs.25
Lunch Rs.50
Tea Rs.10
EntrancefeeatZ00 Rs.5
RentRs.10650perbus.SpecialpermitfeeRs.500perbus.Blockentrancefeefortheentireteam
attheplanetariumRs. 2520.PrizetoallthestudentsforgamesRs. 2500.Nocostsareincurred
inrespectoftheaccompanyingteachers(excepttheallowanceofRs.250perteacher).
Youarerequiredtoprepare:
Page4of5
i.A?exiblebudgetestimatingthetotalcostforthelevelsof30,60,90,120and150students.
Eachitemofcostistobeindicatedseparately.
ii.Comparetheaveragecostperstudentattheselevels
(b)Explainindetailtheclassi?cationofbudgetsaccordingtotime. [7M]
UNIT?V
9. (a)WhatisstandardCosting?Whatarethestepsinvolvedinthestandardcostingsystem? [7M]
(b)AfactoryisengagedinproducingaproducttwogradeofmaterialAandBmixedintheratio
of5:3,thestandardpriceofmaterialAisRs. 5perunitandthatofBRs.4perunit.Normal
lossinproductionisexpectedat10%. Duetoshortageofmaterialsitwasnotpossibletouse
thestandardmix.However,normallossisstillexpectedtobe10%asearlier.Theactualresult
isasfollows: [7M]
MaterialA250unitsatRs.4.80andmaterialB150unitsatRs.4.60
Actualproduction364units.
Calculate:
i.Materialpricevariance
ii.Materialmixvariance.
iii.Materialyieldvariance.
iv.Materialcostvariance
10. (a)Howstandardcostingisrelatedtobudgetarycontrol? [7M]
(b)Fromthefollowinginformation,giveninTable8compute: [7M]
i.Materialcostvariance
ii.Materialpricevariance
iii.Materialusagevariance
iv.Materialmixvariance
v.Materialyieldvariance.
Table8
Material Standard TotalRs. Actual Actual
Quantity(kilos) UnitpriceRs. QuantityRs. UnitpriceRs.
A 10 2 5 3
B 20 3 10 6
C 20 6 15 5
Total 50 11 30 14
Page5of5
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This post was last modified on 04 December 2019