Saurastra University 2006 M.Com Commerce Accounting For Managerial isions - Question Paper

April and so on) while remaining 50% amount is
received in 2nd month of selling (i.e. March recd. in
May and so on).
(3) 20% of purchase is on cash basis. Creditors for purchase
are paid in next month of purchase.
(4) Time lag for payment :
Labour exp. 1/2 month, Factory exp. 1/4 month
Adm. exp. 1/8 month and Selling exp. 1/3 month.
(5) On 31-3-06 balances of debtors' A/c is Rs. 2,30,000
(Rs. 90,000 for sale of February and Rs. 1,40,000 for sale
of March) and creditors' A/c is Rs. 1,65,000.
(6) Rs. 24,100 for internet on debentures will be paid in last
week of June '06. During July '06 Rs. 1,225 will be paid
for misc. expenses.
(7) Rs. 12,375 will be realised due to sale of old machinery
in May.
2 Production capacity of Jayman Ltd. is 10,000 units at 20
100% efficiency. From cost records, subsequent details regarding
production and sale are available for the year 2005 :
(1) Sale (Selling price per unit Rs. 150) Rs. 7,50,000
(2) Profit : 25% on cost
(3) Factory overheads : (a) Fixed 48% (b) Variable 32% and
(c) Semivariable 20%, Semivariable factory overheads
are 61/4% of prime cost
(4) Office expenses : 20% of total cost (in which 80% are
fixed)
SX-5666] 10 [Contd...
(5) Selling expenses : 10% of total cost (in which 60% are
variable)
(6) Proportion of material and labour is three : 1
(7) Labour hour rate is Rs. four per hour, while price of raw
material is Rs. eight per kg.
(8) Semivariable factory expenses increase by 50%
upto 80% production level and then after 100% increase
takes place
(9) Selling price will remain unchanged upto 8,000 units.
After that it will decrease by 5%
(10) Company estimates that during the year 2006, minimum
sale will be 6,000 units and maximum sale can be 10,000
units.
You have to prepare for production 6,000 units, 8,000 units
and 10,000 units :
(a) Material budget (in kgs. and Rs.)
(b) Labour budget (in hours and in Rs.)
(c) Factory overheads budget
(d) Budget for selling expenses and
(e) Budget for office expenses.
OR
2 ans any 2 : 20
(1) How zero based budget differ from traditional budget ?
elaborate the advantages, we can get by use of zero

Earning:   Approval pending.