Write a detailed note on Batch Costing and Economic Batch Quantity.
[7 marks]The following data relates to the manufacture of a standard product during the month ended on 31 March, 2013. Raw materials consumed Rs. 15,000 Direct Wages Rs. 9,800 Machine hours worked 2300 hours Machine hour rate 50 paise per hour Office on cost 10% of Works cost Selling on cost 10 paise per unit Units produced 19,030 units Units sold 11,418 units Sales price Rs. 2 per unit You are required to prepare a cost sheet in respect of the above showing: (i) Cost per unit and (ii) Profit for the period. Page 1 of
[3 marks]Discuss the various characteristics of Activity Based Costing.
[7 marks]How do the mangers decide whether the cost is a direct cost or indirect cost? Illustrate
[7 marks]A Company, manufacturing two products, furnishes the following data for two products: Annual Total Total Number of Total Number Products Output Machine purchase Orders of Set-ups (Units) Hours A 5,000 20,000 160 B 60,000 1,20,000 384 44 The annual overhead are as under: Particulars Rs. Volume related activity costs 5,50,000 Set-up related costs 8,20,000 Purchase related costs 6,18,000 You are required to calculate the cost per unit of each product Aand Bon the basis of Activity Based Costing Method.
[20 marks]Explain Normal Loss, Abnormal Loss and Abnormal Gain with an example under process costing.
[7 marks]Aproduct passes through three processes A, Band C. The normal wastage of each process is as follows: Process A-3%, Process B-5% and Process C-8%. Wastage of Process Awas sold at 25 paise per unit, that of Process Bat 50 paise per unit and that of Process Cat Re.1 per unit. 10,000 units were issued to Process Ain the beginning of October 2012 at a cost of Re.1 per unit. The other expenses were as follows: Particulars Process A Process B Process C Sundry Materials Rs.1,000 Rs.1,500 Rs.500 Labour Rs.5,000 Rs.8,000 Rs.6,500 Direct Expenses Rs.1,050 Rs.1,188 Rs.2,009 Actual Output 9,500 units 9,100 units 8,100 units Prepare the process accounts, assuming that there was no opening or closing stocks.
[7 marks]Define the concept of Cost Audit and Management Audit. Also explain the objectives of Cost Audit.
[7 marks]From the following details, calculate the cost per mile of Vehicle – X. Particulars Vehicle - X (Rs.) Value of vehicle 15,000 Road tax p.a. 500 Insurance charges p.a. 100 Garage rent p.a. 600 Driver's wage p.m. 200 Cost of petrol per litre 0.8 Miles per litre Miscellaneous costs per mile (including tyres and maintenance) 0.2 Estimated life 1,50,000 miles Estimated annual milage 6,000 Page 2 of
[3 marks]Discuss in brief features of operating costing.
[7 marks]XYZ company furnishes you the following information for the Year 2010. Sales (Rs.) Profit (Rs.) Period I 2,00,000 20,000 Period II 3,00,000 40,000 From the above you are required to compute the following; assuming that the fixed cost remain the same in both periods: 1. Profit/Volume Ratio (%). 2. Margin of safety. 3. Break Even Point sales. Q.5 (A) Define Flexible Budget. Explain its importance as a budgeting technique and tool of control. (B) What are the various advantages and disadvantages of budgeting?
[7 marks]Q.5 (A) Describe the important advantages of Standard costing. (B) For making 10 kg. of Wimco, the standard material requirement is as follows: Material Quantity (kg.) Rate per kg. (Rs.) A 8 6.00 B 4 4.00 During April, 100 kg. of Wimco were produced. The actual consumption of materials is as follows: Material Quantity (kg.) Rate per kg. (Rs.) A 75 7.00 B 50 5.00 Calculate : (1) Material Cost Variance (2) Material Price Variance (3) Material Usage Variance Page 3 of