University of Mumbai 2009-1st Year Diploma Financial Management Pgdfm costing - Question Paper
Costing 2009
Con. 2088-09.
20
<>oj>\c Cost Cokcp T(3 Hours)
O
N.B.:(1) Attempt any five questions.
(2) Figures to fight indicate fuil marks.
(3) Working notes and assumptions forms part of answer.
(4) Use of simple calculator is permitted.
1.
AT
Factory Overhead partly variable.
Administration Overheads, are-Rs. 12000 per month.
Selling Costs are 5% of sales,
Profits are estimated @ -15% of sales,
For the fourth week the output is planned to be 5000 units. Prepare cost sheet for fourth week and ascertain total sales.
|
A factory manufactures an article. For which production capacity is 5000 units per week ? For first three weeks of March 2009 the cost data is as follows : | |||||||||||
|
(AM 4 \/ | ||||||||||
|
<5|s>0 S lo 0(7 Q9* 3- | |||||||||||
|
Sanjan Ltd. has two factories. At each factory one product is produced. The cost Analysis for each factory is | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
|
f f V | ||||||||||||||||||||||||||||||||
2.
20
Compute for each product /Factory
(a) P.V. Ratio
(b) Break Even Point'in Value and Unit r
(c) Margin of safety as-8 fee Profit if output is increased by 20%
Profit if output is reduced by 20%.
(d)
(e)
20
75,000 kg 5000 kg 15000 kg
Pi
Pi
10000 kg. 12000 kg.
|
Hours Hours Hours Hours |  |
bf eyed'
3. AM Ltd. Manufactures two products.
For Month April 2009 expected sales are P115000 kg and The opening stock <
f The expected claiming stoibk
The labour requirements for each Unit of 'P, Skilied
Unskilled ,, P2 Skilled
Unskilled
One worker works for 8 hours for 25 days.
The wages Paid to Unskilled Worker Rs. 3000 p.m.
Paid to Skilled Worker Rs. 5,000 p.m. You are required to calculate :
fV| Total labour Cos* for P, and
{/) Ho. op 3 UmKiKc) "te
2QQQ ' ------------------cnucu OI*L IVIfclfUIi 20
Production Capacity Actual Production
|
ata data for Month ended 31st . | |
|
10000 |
Units p.m. |
|
7500 |
Units p.m. |
|
Rs. |
Remarks |
|
22,500 - | |
|
15,000 - | |
|
11,250 - |
- Variable |
|
18,750 - |
- Variable |
|
37,500 - |
- 40% Fixed |
|
3750 - |
-. 20% Variable |
|
12,000 ~ |
- Fixed |
|
5400 - |
- Fixed |
|
10800 - |
- Fixed |
|
15000 - |
- Variable |
|
17500 - |
- 50% Fixed |
Material Cost Wages
Indirect Labour Indirect Materials Electricity Repairs Salaries
Insurance Premium Depreciation Sales Commission Office Expenses
, . 2009, Company expt-wo nave uuipui or ouuu units or 9000 Units You are to prepare estimate of cost for both levels of output and suggest sellinq price, so as to have aprofit of 20% on cost. *
5. TB Ltd. for system of Standards and Budgets. / The plant capacity is 6000 Units p.m.
%?& -vr: 20
The standard costs are :
P/Units /
Material R 3 kg @ Rs. 3 9-00 '
Wages1 L 4 Hrs. @ Rs, 5 20*00 '
Variable Overhead 11-00
Fixed Overhead (Cost Rs. 60,000) 10-00
During March 2009 actual production was 6300 Units.
The Actual Cost were
. R Kg 20000 @ Rs. 2-80 ?
L Hrs24000 @ Rs. 5-40 ? '
Vari&blG O vs rh s d r>nr\
Fixed Overheads 62,000
Calculate Cost Variances with as much detail as possible.
6. Explain with suitable illustrations following methods of pricing issue of materials
(a) First In First Out '
(b) Weighted Average f
(c) Last In First Out .
(d) Simple Average
7. (a) Explain circumstances when the following products would earn higher profits io
(1) Product with Higher c/s ratio
(i.e. P/V Ratio)
(2) Product with Lower c/s Ratio I
* (i.e. P/\T Ratio)
( ) Enlist various decisions taken by Management with assistance of Marginal 10 Costing Techniques.
Explain the following : (Any four) :
(a) Idle time
(b) Non-Monetary Incentives for labour c
(c) Economic Order Quantity ' J?
(d) Equivalent Production
(e) Profit on Incomplete Contract
(f) 6*3
*5
PDF created with pdfFactory Pro trial version www. pdffactory. com
|
Attachment: |
| Earning: Approval pending. |
