Rajasthan Technical University 2009 M.B.A Management Accounting-II - Question Paper
Rajasthan tech. University
M.B.A. two sem (Main/Back)
July 2009
Management Accounting-II Roll No. : HmIiMI_ To,al Printed Pages : E
M. B. A. (Sem.H) (Main / Back) Examination, July - 2009 M-203 : Management Accounting - II
Time: 3 Hours] [Total Marks : 70 [Min. Passing Marks : 28 The question paper is divided in two sections.
There -are sections A and B. Section A contains 6 questions out of which the candidate is required to attempt any 4 questions. Section B contains short case study/application based 1 question
.. V1':" All questions are carrying equal marks.
Use of following supporting material is permitted during examination. (Mentioned in form No. 205)
1.__Nil __2.___NM____
l(J/"The term cost must be qualified according to the context".
Discuss the statement referring its importance in managerial decision making.
. (b)/mstinguish between "Relevant" and "Irrelevant" costs.
2 (ay Explain various methods of allocating joint cost to joint and by-products. i
(b)Sirohi Ltd. produces a single product. Estimated cost per unit is detailed below1:
;
\ -\ Direct material................................!1........... 12
t \ :*Direct wages.................................................!. 8
Direct expenses..............................................4
Variable overhead......................................... 2
Semi variableoverheads at 100% level of activity (10,000 . units) is Rs. 60,000 and these expense vary in steps of Rs. 3,000 for every change in output of 1,000 units. Fixed
2M6203] HUH || | | HI! || 1 , [Contd...
overheads are estimated at Rs. 60,000. Selling Price is expected to be Rs. 50 per unit. Prepare flexible budget at xb%, 70%, 90% level of activity. ..,
/ ' ''1+1
3 / (a) JSriefly describe the provisions of Accounting Standard 3 y (AS>3) as regards preparation of cash flow statement.
/ (b)/ Two divisions of XYZ Ltd. start the year 2008 with identical balance sheets, but the position changed by the end of the _year as shown below :_
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2008 Division 'A' |
2008 Division rB' i | |||
|
January 1 Rs. |
December 31 Rs. |
January 1 Rs. |
December 31 Rs. | |
|
Current : Assets Current : Liabilities Working capital Fixed assets (Net) Capital' employed Financed by : Long-term Debt Equity share capital & reserve |
6.25.000 3.75.000 |
6.25.000 3.75.000 |
6.25.000 3.75.000 |
6.25.000 3.75.000 |
|
2,50,000. 2,50,00Q |
2,50,000, 6,25,000 |
2.50.000 2.50.000 |
2,50,000 5,00,000 | |
|
5,00,000 |
8J5,000. |
5,00,000 |
6,25,000 | |
|
5,00,000 |
r 2.50.000 6.25.000 |
i 5,00,000 |
6,25,000 | |
|
5,00,000 |
8,75,000 |
5,00,000 |
6,25,000 | |
You have the following additional information :
(a) Both the divisions have identical earning power.
(b) Each division earns a Net Profit Rs. 60,000 after Taxation @ 50%. -
(c) Depreciation amounts to Rs, 40,000 for each.
You are required to prepare funds flow statements for each division and comment on the financial policy and practices adopted by each as revealed by the Fund Flow Analysis.
4 (a) Distinguish between "Earning Per Share (EPS)" and "Diluted Earning Per Share".
(b) X Co. Ltd. produces four joint products by refining crude vegetable oil. These products have ready market value but the company wants to process them further for maximising profit. From the following information advise which products should be processed further and which should be sold at split off point. Assume all costs incurred after split off point are variable :
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* I fl 6 1 0 1 *
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Find also the maximum profit if joint cost is Rs. 90,000. 4+10 |
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5 Given below is the balance sheet of Asatayam Ltd. as at 31-3-2009 : | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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The company having turned the corner a scheme of |
reconstruction was prepared and approved as under : (1) To
bring in the books the present market value of land and
buJHIngB which had appreciated by 150%; (2) Equity shares
tre"reduced to Rs. 10 per share paid, the face value
remaining the sajjie at Rs. 100 and the equity shareholders
paying a call of Ks. 50 per share to provide funds for the
company working; (3) Unsecured loans to be paid immediately
to the extent of Rs. 1,00,000; (4) Unsecured creditors to be
, {laid immediately to the extent of 10% of their claims and
they accepting a remission of 20% of their claims;
(5) Development rebate reserve, being no longer required,
to be transferred to profit and loss account; (6) Investments
to be brought to their market value; and (7) The amount
available as a result of the scheme to be used to write off
the debit balance in profit and loss account. t .
2M6203] III Hill I I mill 3 [Contd.
Give journal entries to record the above and give the balance sheet after the reconstruction is effected.
14
6 fayWrite brief notes on :
(i) Economic Value Addition (EVA).
"'''Human resources accounting.
. (b)You are furnished with the following information as regards X Ltd. :
(i) Profit Volume Ratio (PVR) for the year 2008, 40%.
(ii) Company wants to increase selling price by 10% now in 2009. 5
(iii) Variable cost will be higher by 5% in 2009.
' (ivj Total fixed will increase from Rs. 3,00,000 in 2008 to
Rs. 4,27,300 in 2009.
Work out Break Even Point (BEP) in term of sales in 2008 and 2009. \ 4+4+6
Active,manufacturers are producing "Dinner Rolls" in batches of. 12 dozen using a standard costing system. 200 of these batches were'budgeted for a period of 4 week. Total fixed overhead for this level were Rs. 15,000. Standard cost per batch is detailed below.
Rs.
Wheat flour (20 kgs.).........................................................60
Mixing cooking direct labour hours (15).......................150
Total factory overhead......................................................120
330
Following costs were incurred in producing 225 batches of rolls during the above period. Besides, there were 50 batches in work in progress (WIP) which were 50% completed as regards all . elements of cost. However, there was no opening stock of any kind. Actual were as follows :
~ ,, Rs: Direct material consumed 5250 kgs .................13,650
{ -& Direct labour hours (Mixing-cooking) 3650......30,660
' Actual variable overhead.....................................11,050
; r - Actual'fixed overhead..........................................15,500
r <> Required :
(i) Prepare a table for all variances relating to material
and labour costs.
(ii) Overhead variances using two way and three way
analysis of variance.
8+6
2M6203] lllllllllllllUl 4 [ 8500 ]
Give journal entries to record the above and give the balance sheet after the reconstruction is effected.
6 -'''''Write brief notes on :
(i) Economic Value Addition (EVA).
(iiHuman resources accounting.
. (b>iou are furnished with the following information as regards X Ltd. :
(i) Profit Volume Ratio (PVR) for the year 2008, 40%.
_ (ii) Company wants to increase selling price by 10% now in ' 2009.
(iii) Variable cost will be higher by 5% in 2009.
(iv) Total fixed will increase from Rs. 3,00,000 in 2008 to R6. 4,27,300 in 2009.
Work out Break Even Point (BEP) in term of sales in 2008 and 2009. ilxe*- 4+4+6
Active,manufacturers are producing "Dinner Rolls" in batches of 12 dozen using a standard costing system. 200 of these batches were budgeted for a period of 4 week. Total fixed overhead for this level were Rs. 15,000. Standard cost per batch is detailed below.
Rs.
Wheat flour (20 kgs.).........................................................60
Mixing cooking direct labour hours (15).......................150
Total factory overhead......................................................120
330
Following costs were incurred in producing 225 batches of rolls during the above period. Besides, there were 50 batches in work in progress (WIP) which were 50% completed as regards all . elements of cost. However, there was no opening stock of any kind. Actual were as follows :
. . \>'i - .. s-Direct material consumed 5250 kgs ..................13,650
Direct labour, hours (Mixing-cooking) 3650......30,660
' Actual variable overhead.....................................11,050
* Actual fixed overhead..........................................15,500
; v - Required :
(i) Prepare a table for all variances relating to material and labour costs.
(ii) Overhead variances using two way and three way analysis of variance.
8+6
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Attachment: |
| Earning: Approval pending. |
