The Institute of Chartered Financial Analysts of India University 2011 C.A Chartered Accountant Chartered Accountancy -Pcc - Mock Test Series 1 - Question Paper

under the 2 methods of pricing of raw material problems used. You need not
draw up the Stores Ledgers.
4. (a) define the factors which should be taken into consideration before
introducing an incentive system.
(b) Using the details provided below, you are needed to compute the earnings of
workers Rio and Rayan and subsequently allocate these earnings to the three
Jobs A, B and C.
Rio Rayan
(a) Basic Wages Rs. 100 Rs. 100
(b) Dearness Allowance 50% 55%
(c) Provident Fund (on basic wages) 8% 8%
(d) Employees State Insurance (on basic wages) 2% 2%
(e) Overtime 10 hrs. ?
(f) Idle time and leave ? 16 hrs.
For your calculations, you may presume the following:
? Normal working hours for a month are 200 hours.
? Overtime is paid at double the normal wages plus dearness allowance.
? Employers contributions to State Insurance and Provident Fund are at
equal rate with the employees contributions.
? The month contains 25 working days and 1 paid holiday.
The 2 workers were employed on jobs A, B and C in the subsequent
proportions:
Job A B C
Worker A 80 60 60
Worker B 100 40 60
Overtime was done on job
Y.
5. (a) explain briefly the Step method and Reciprocal Service method of secondary
distribution of overheads.
(b) Differentiate ranging from Job costing and Batch costing.
6. Write short notes on:
(a) Cost of work uncertified
(b) Retention money
(c) Profit /loss on incomplete contracts
(d) Cost plus contract
(e) Escalation clause.
7. A factory is currently running at 50% capacity and produces 5,000 units at a cost
of Rs. 900 per unit as per details below:
Rs.
Material 500
Labour 150
Factory overheads 150 (Rs. 60 fixed)
Administrative overheads 100 (Rs. 50 fixed)
The current selling price is Rs. 1,000 per unit. At 70% working, material cost per
unit increases by 2% and selling price per unit falls by 2%.
Estimate profits of the factory at 70% working by preparing a flexible budget.
8. DECCAN Airways owns a single jet aircraft and operates ranging from Bangalore and
New Delhi. Flights leave Bangalore on Mondays and Thursdays and depart from
New Delhi on Wednesdays and Saturdays. DECCAN Airways cannot afford any
more flights ranging from Bangalore and New Delhi. Only tourist class seats are

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