5. | (a) | In each of the following, one of the alternatives is Correct. Indicate the correct one: | 1x9=9 | |
| | (i) | Conversion cost is equal to the total of the (A) | Direct material cost and direct labour cost | (B) | Direct material cost and factory overheads | (C) | Direct material cost, direct labour cost and factory overheads | (D) | Direct labour cost and factory overheads | | | (0) |
| | (ii) | The variable cost per unit is (A) | Variable in nature | (B) | Fixed in nature | (C) | Semi–variable in nature | (D) | None of the above | | | (0) |
| | (iii) | Bincard contains (A) | The value and quantity of material lying in the Bin | (B) | The value of material lying in the Bin | (C) | The quantity of all kind of materials of stores | (D) | The quantity of material lying in the Bin | | | (0) |
| | (iv) | Selling price Rs. 48 per unit; variable cost Rs. 40 per unit and fixed cost Rs. 6,00,000. The Break–even–point in units will be (A) | 15,000 units | (B) | 12,500 units | (C) | 1,25,000 units | (D) | 75,000 units | | | (0) |
| | (v) | Profit–volume Ratio (P/V Ratio) for the firm is 40 per cent and variable cost of a product is Rs. 720 per unit. Its selling price per unit will be (A) | Rs. 1,008 | (B) | Rs. 1,200 | (C) | Rs. 1,800 | (D) | Rs. 1,080 | | | (0) |
| | (vi) | Contribution is a sum of (A) | Fixed cost and profit | (B) | Variable cost and profit | (C) | Variable cost and fixed cost | (D) | None of the above | | | (0) |
| | (vii) | Labour turnover is measured by (A) | Separation Method | (B) | Replacement Method | (C) | Flux Method | (D) | All of the above | | | (0) |
| | (viii) | Which of the following items is excluded from cost accounts? (A) | Income tax | (B) | Interest on debentures | (C) | Cash discount | (D) | All of the above | | | (0) |
| | (ix) | Idle time is a (A) | Time spent on production | (B) | Unproductive time | (C) | Time of work done beyond normal working hours | (D) | Time taken by casual labourers/workers | | | (0) |
| (b) | Fill in the blanks: | 1x5=5 | |
| | (i) | At the level of Break–even–sales the profit will be ______________. | | (0) |
| | (ii) | All the indirect costs related to indirect material, indirect labour and Indirect expenses are termed as ___________________. | | (0) |
| | (iii) | Factory cost plus administrative overheads is known as ____________________. | | (0) |
| | (iv) | When the amount of overhead absorbed is less than the amount of overhead incurred, it is called _____________________ of overhead. | | (0) |
| | (v) | For the goods transport company ______________ is the suitable cost unit. | | (0) |
| (c) | State with reasons whether the following statements are True or False: | 2x8=16 | |
| | (i) | Chargeable expenses is an example of fixed cost. | | (0) |
| | (ii) | Costs which are ascertained after they have been incurred, are known as historical costs. | | (0) |
| | (iii) | The total ordering cost and the total carrying cost would be same, if order size is kept at economic order quantity. | | (0) |
| | (iv) | The items consisting of only a small percentage of the total items handled by the stores, but requiring heavy investment, are kept in ‘C’ category under ABC Analysis. | | (0) |
| | (v) | A well satisfied team of workers can raise productivity to a large extent. | | (0) |
| | (vi) | Overtime worked on account of abnormal conditions should be charged to cost of production. | | (0) |
| | (vii) | The P/V Ratio = Profit/Margin of Safety. | | (0) |
| | (viii) | At BEP, Total sales and variable costs are same. | | (0) |
6. | (a) | Calculate the labour cost chargeable to Job No. 102 in respect of an employee, by using the following details, who is paid according to (i) | Halsey 50% scheme; | (ii) | Rowan Scheme Time allowed Time taken Wage rate | : : : : | 7 hours 30 minutes 6 hours 45 minutes Rs. 45 per hour | | 3 | (0) |
| (b) | The cost analysis of manufacturing 4,000 units of a product is as follows: Materials Rs. 80,000; Labour Rs. 50,000; Overhead charges (fixed and variable) Rs. 30,000. The company produces and sells 6,000 units @ Rs. 45 each and is making a profit of Rs. 35,000. You are required to find out the (i) | Total amount of fixed overheads and | (ii) | Variable overheads per unit. |
| 2x2=4 | (0) |
| (c) | Price per unit of material X Rs. 15; annual consumption 60,000 units; ordering cost Rs. 400 per order and annual carrying cost 20 per cent of material cost. Calculate the Economic Order Quantity | 2 | (0) |
| (d) | In a factory, daily consumption of a component is 300 to 350 units and re–order period is 6 to 10 days. Calculate the re–order level for the component. | 1 | (0) |
7. | (a) | The following figures are available from the records of Aastha Ltd. as at 31st March. Particulars | 2010(Rs. lakhs) | 2011(Rs. lakhs) | Sales Profit | 150 30 | 200 50 | Calculate: (i) | The P/V ratio and total fixed expenses. | (ii) | The Break–even level of sales. | (iii) | Sales required to earn a profit of Rs. 90 lakshs. | (iv) | Profit or Loss that would arise, if the sales were Rs. 280 lakhs. |
| 1x4=4 | (0) |
| (b) | The following details are available to you: Direct material Rs. 4,00,000 Productive wages Rs. 3,00,000 Factory overheads are recovered @ 40 percent on productive wages and administrative overheads are recovered@ 10 percent of factory cost If the actual factory expenses are Rs. 1,15,000 and administrative expenses are Rs. 85,000, find out the under/over recovery of overheads. | 3 | (0) |
| (c) | Classify the following costs into fixed, semi–variable and variable costs; | ½x6=3 | |
| | (i) | Depreciation of Building | | (0) |
| | (ii) | Power | | (0) |
| | (iii) | Water and Gas | | (0) |
| | (iv) | Salary of Work Manager | | (0) |
| | (v) | Commission to salesman as a percentage of sales | | (0) |
| | (vi) | Showroom expenses | | (0) |
8. | | Z Ltd. produced 500 units of a product and the following costs were incurred: Material consumed Wages paid Chargeable expenses Factory overheads Office overheads Selling and distribution overheads | Rs. 20,000 30,000 2,000 26,000 20,000 10,000 | 450 units were sold at cost plus 25 per cent on sales. Prepare a statement showing the (iii) | Cost of production; | | 1x6=6 | (0) |
| (b) | If the Opening Stock of finished goods is 3,000 units, the production during the period is 30,000 units. Closing Stock of finished goods is 5,000 units and is Rs. 5 per unit is spent on every unit sold, then find out the total selling expenses. | 2 | (0) |
| (c) | If the prime cost is Rs. 4,00,000 and factory cost is Rs. 6,40,000 and office overheads are 33⅓percent of the factory overheads, what would be the cost of production? | 2 | (0) |