Explain in detail the classification of costs according to Variability and Controllability.
[7 marks]Explain the Difference between Job Costing and Batch Costing
[7 marks]Explain Normal Loss, Abnormal Loss and Abnormal gain with an example under process costing Man power ltd. Manufactures two products Aand Busing the same equipment and same
[7 marks]processes. An extract from production data for these product in one period given below: Direct Quantity Machine labour No of Orders Particular Produced Hours per hours per Setups handled (units) unit unit Product A 10000 2 6 20 30 Product B 14000 4 2 80 120 The details of overheads costs are as follows: Relating to machine activity Rs.800000 Relating to production run setups Rs.80000 Relating to handling of orders Rs.180000 Calculate the production overheads to be absorbed by one unit of each of the products using ABC approach using suitable cost drivers.
[ marks]Write a short note on characteristics and features of operating costing.07
[ marks]“Marginal costing is a valuable technique to the management “Critically evaluate.
[ marks]07 Ramanujan & Company furnishes the following data relating to the manufacture of product
[7 marks]during the month of Dec 2021. Raw material consumed Rs. 18000 Direct labour charges Rs. 9000 Machine hours worked 900 Machine hour rate Rs. Administrative overheads 20% on work cost Selling overheads Rs. 0.50 per unit Units produced 17100 Units sold 16000 @ Rs. 4 per unit You are required to prepare Cost-sheet & Calculate cost per unit. Page 1 of
[3 marks]What do you understand by CVP Analysis? How CVP analysis is useful for the management?
[7 marks]What do you understand by budgeting? What are the various advantages and disadvantages of budgeting?
[ marks]Compare & Contrast : Cost Reduction & Cost Control
[ marks]07 ABC Ltd.’s one of the department attains a sale of Rs 5,00,000 at 80% of its normal capacity
[7 marks]and its expenses are given below: Administrative Rs. Selling Costs Rs. Expenses Office Salaries 80000 Salaries 8% of Sales General Expenses 2% of Sales Travelling Expenses 2% of Sales Depreciation 7500 Sales office Expenses 1% of Sales Rates and Taxes 8750 General Expenses 1% of Sales The distribution costs are: Wages- Rs 20,000; Rent – 2% of sales; and other expenses – 5% of sales. Draw a flexible budget operating at 90%, 100%, and 110% of normal capacity.
[ marks]Explain the following variances: (i) Material Price Variance (ii) Labour Mix Variance (iii) Labour
[ marks]07 Ideal Time Variance (iv) Capacity Variance. The details regarding composition and the weekly wage rate of labour force engaged on a job
[7 marks]scheduled to be completed in 30 weeks are as follows: Standard Actual Category of No of Weekly No of Weekly Workers Labours wage rate Labours wage rate Skilled 75 60 70 70 Semi-skilled 45 40 30 50 Unskilled 60 30 80 The work is actually completed in 30 weeks. Calculate various Labour cost variances.
[20 marks]Manan Ltd. Provided the following data relating to process Xin its plant for the month of December, 2021. Opening WIP: 500 units Cost of Opening WIP: Material- Rs. 4800, Labour- Rs. 3200 and Overheads- Rs. 6400 Units introduced during the month- 19500 Processing cost incurred during the month: Material- Rs. 186200, Labour- Rs. 72000 and Overheads- Rs. 106400 Output: Units transferred to Process B: 18200 Closing WIP: 400 [Degree of completion: Material-100%, Labour and overhead- 50%] Normal loss is 5% of total input and normal scrapped units fetch Rs. 1 each. Prepare the following statements. (a.) 1. Statement of Equivalent Production 2. Statement of Cost
[14 marks]. 1.Statement of Evaluation 2.Process A Account Page 2 of
[3 marks]Kerav ltd. has an annual production of 100000 units for a motor component. The component’s cost structure is as follows: Particulars Cost Per Unit (Rs.) Material 270 per unit Labour (25% fixed) 180 per unit Expenses: Variable 90 per unit Fixed 150 per unit Total 690r unit
[14 marks]The purchase manager has an offer from supplier who is willing to supply the component at Rs. 540.Should the component be purchased and production stopped? Assume the resource snow used for this component’s manufacture are to be used to produce another new product for which the selling price is Rs. 485.
[ marks]In the latter case, the material price will be Rs. 200 per unit. 100000 units of this product can be produced on the same cost basis as above for labour and expenses. Discuss whether it would be advisable to divert the resources to manufacture the new product, on the footing that the component presently being produced would, instead of being produced, be purchased from the market. Page 3 of
