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

based budget ?
(2) Write detailed note on Master Budget.
(3) explain any 5 advantages and 5 limitations of
budgetary control.
(4) discuss Variance Accounting System in detail.
SX-5666] 11 [Contd...
3 subsequent particulars of Vatsaraj Ltd. are available : 20
Profit Std. Std. true true
volume Selling Qty. Selling
of sale Price per Sold Price
(units) unit (Rs.) (units) (per unit)
J 6,000 3-50 8,000 4-00
K 8,000 3-00 10,000 2-50
R 10,000 2-50 12,000 3-00
obtain out subsequent variances from the above particulars :
(1) Sales value variance
(2) Sales price variance
(3) Sales quantity variance
(4) Sales mix variance
(5) Sales sub-quantity variance
OR
3 (a) subsequent data are available for a product : 12
Particulars Std. Standard true true
of Raw Qty. Price Qty. Price
Material (Kg.) (Rs.) (Kg.) (Rs.)
A 600 4-00 800 5-00
B 400 6-00 500 5-00
C 200 25-00 140 35-00
Total Mix 1,200 true Mix 1,440 —
Standard
Waste 120 true Waste 240 —
Standard.
Production 1,080 true Prod. 1,200 —
obtain out :
(1) Material Price Variance
(2) Material Usage Variance
(3) Material Mix Variance
(4) Material Yield Variance.
SX-5666] 12 [Contd...
(b) From the cost records of a factory, subsequent 8
particulars regarding direct labour for March 2006
is available :
Standard Hours 1,000 and Standard Hour Rate
Rs. 8-00
true Labour charges paid Rs. 9,000 for 900 Hours
Abnormal idle time : 40 hours
obtain out all variables relating to labour.
4 (a) Budgeted production of ABC Co. is 5,000 units 10
while true production is 6,000 units, out of which
4,500 units were sold.
Selling price per unit is Rs. 200
Details regarding cost of product are as follows :
Direct Material per unit ........................ Rs. 90
Direct Labour per unit .......................... Rs. 60
Variable factory exp. per unit .............. Rs. 10
Fixed expenses :
(1) Factory ....................................... Rs. 1,00,000
(2) Administrative ........................... Rs. 50,000
(3) Selling and Distribution .......... Rs. 30,000
Commission at 5% on true sale is to be provided.
Prepare statement showing profit as per :
(i) Absorption costing and
(ii) Marginal costing.
SX-5666] 13 [Contd...
(b) Due to an increase in the sale of a company by 50% 10
i.e. Rs. 1,00,000 in the month of February as compared
to the month of January, there was a reduce in the
loss by 25% i.e. Rs. 50,000.
From above particulars, obtain out :
(1) Profit value ratio
(2) Total fixed cost
(3) Break even point
(4) Requisite sale to earn profit of Rs. 1,00,000
(5) Amount of profit when sale is Rs. 11,00,000.
OR
4 Paramount Ltd. manufactures products P, Q and R and 20
seeks your advice regarding production mix. You have to
prepare statement relating maximum profitable sale mix
which indicates :
(1) Expected profit from current budgeted production mix
and
(2) Profit expected from maximum profitable production
mix.
Particulars supplied are as under :
Particulars P (Rs.) Q (Rs.) R (Rs.)
Direct Material per unit 25-00 12-00 35-00
Direct Labour per unit
Dept.-1 (rate per hour Rs. 0-60) 21-00 18-50 12-00
Dept.-2 (rate per hour Rs. 0-75) 15-00 7-50 9-00
Dept.-3 (rate per hour Rs. 0-70) 21-00 14-00 7-00
Variable overheads per unit 5-00 4-00 3-00
Budgeted production (in units)
during current year 12,000 15,000 10,000
Maximum sale estimate
(in units) during 2006 15,000 18,000 12,000
Selling price per unit Rs. 100-00 80-00 90-00
Fixed overheads during the year is Rs. 2,41,000
Labour supply of dept. two is limiting factor and no addition
or increase is possible in current supply.
SX-5666] 14 [Contd...
5 ans any 2 ques. : 20
(1) discuss the utility of differential cost analysis
(2) Write note on Target Costing System
(3) discuss the meaning of Control Accounts. Clarify-why
control accounts are necessary ?
(4) Considering the various stages of Life Cycle, explain
the modifications occurred in different cost of a product.

Earning:   Approval pending.