Scribd Logo
Upload

Welcome to Scribd!

  • 90 views

    Management Accounting989 DqNgYxv2Gj

    Uploaded by

    Prekshit Kalashdhar
    1. The document is a final exam paper for a management accounting subject containing 4 questions. 2. Question 1 asks students to prepare production budgets at 70% and 90% capacity and flexible administration and distribution cost budgets. 3. Question 2 involves a standard costing question calculating material variances. 4. Question 3 involves identifying the optimal spare part to produce based on contribution and determining if an offer to utilize excess machine hours should be accepted if it requires a 10% price reduction. 5. Question 4 requires calculating profit for the year under absorption and marginal costing after being given production, sales, and cost information.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Management Accounting989 DqNgYxv2Gj

    Uploaded by

    Prekshit Kalashdhar
    90 views3 pages
    1. The document is a final exam paper for a management accounting subject containing 4 questions. 2. Question 1 asks students to prepare production budgets at 70% and 90% capacity and flexible administration and distribution cost budgets. 3. Question 2 involves a standard costing question calculating material variances. 4. Question 3 involves identifying the optimal spare part to produce based on contribution and determining if an offer to utilize excess machine hours should be accepted if it requires a 10% price reduction. 5. Question 4 requires calculating profit for the year under absorption and marginal costing after being given production, sales, and cost information.

    Original Title

    Management_Accounting989_DqNgYxv2Gj

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1. The document is a final exam paper for a management accounting subject containing 4 questions. 2. Question 1 asks students to prepare production budgets at 70% and 90% capacity and flexible administration and distribution cost budgets. 3. Question 2 involves a standard costing question calculating material variances. 4. Question 3 involves identifying the optimal spare part to produce based on contribution and determining if an offer to utilize excess machine hours should be accepted if it requires a 10% price reduction. 5. Question 4 requires calculating profit for the year under absorption and marginal costing after being given production, sales, and cost information.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    90 views3 pages

    Management Accounting989 DqNgYxv2Gj

    Uploaded by

    Prekshit Kalashdhar
    1. The document is a final exam paper for a management accounting subject containing 4 questions. 2. Question 1 asks students to prepare production budgets at 70% and 90% capacity and flexible administration and distribution cost budgets. 3. Question 2 involves a standard costing question calculating material variances. 4. Question 3 involves identifying the optimal spare part to produce based on contribution and determining if an offer to utilize excess machine hours should be accepted if it requires a 10% price reduction. 5. Question 4 requires calculating profit for the year under absorption and marginal costing after being given production, sales, and cost information.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 3

    '-\-ANLsuRENDRAMODlscHg#o':¥EL=ERCE/scHooLOF

    ii ¥i-tar

    AcadendcYear:2021-2022 ;:,:+:i::,`:`;:`i:-:~=:::I;::
    •.-J'

    Program BBA Year: H Sem:`s`t:`':;```+rS ``,i.::1:,`=`=j;:+us

    Subject: Management Accounting Batch: 2020-2023

    Date : 23 April 2022 Time:12.30 pin -2.30 pin (2 hrs)

    Marks: 50 No. of pages: 05-


    FINAL EXAMINATION
    1. All questions are compulsory
    2. All types ofcalculators are allowed
    3. Figurestothe right indicate full marks

    Q.1 (a) Expenses for the production of 5000 units at 50 % capacity in Neha Chemicals Ltd., Mumbai
    are given as below: .

    Particulars Unit Cost (Rs.)

    Materials
    502015

    wages
    Variable Overheads
    Fixed Overheads (Rs. 50,000) 10

    Administrative Expenses (95 % Fixed) 10

    Selling Expenses (20 % Fixed)


    6

    Distribution Expenses (90 % Variable)


    5

    Total cost of sales 116

    You are asked to Prepare a budget for 70 % and 90 % production capacity, assuming that at 90 % capacity, cost
    of material will increase by 10 % whereas labour cost will decrease by 5 9/o. (10 marks)

    Q.1(b)MonologCompanyattainssaleofRs,8,00,000at80%ofitsnormalcapacityanditsexpensesaregiven
    below:

    Particulars

    Administration costs:
    80,000
    Office salaries
    2 % of Sales
    General expenses
    17,500
    Depreciation

    Distribution costs:

    Rent

    •;;fri-i;: ------ \ /3 u5 macksh


    Preparefiexjbleadministration&distributioncostspudget,operatingat90%andl00%ofno,r.mrl_
    ¢

    Q 2) Jain Components Linited produces an auto component by blending two metals Iron and Copper. It
    operates standard costing system and the following standards have been set for producing the components.

    Standard price per


    Material Standard Mix kg.
    Iron 40% Rs. 4.00
    Copper 60% RI. 3.00

    The standard loss in processing is 15% of total input.


    During January 2022, the company produced 3 ,400 components of finished output. The.position of
    stocks and purchase of raw material is as under-

    Stock on 1.1.2022 Stock on 31.1.2022 Purchased during January 2022


    Material
    K2S. Kgs. Kgs. RI.
    Iron 70 10 1600 6,800
    Copper 80 100 2400 6,000

    You are required to calculate. Material variances (10 marks)

    Q 3) (a) Precise Vision Ltd manufactures two types of spare parts "Alpha" and "Bravo" for
    CIAT Cars. The production capacity of the company can accommodate the production of any
    one spare part for a particular period of time. The following are the cost and other information
    for the production of the two different spare parts Alpha and Bravo:
    Per Uult Alph`a Bravo
    Raw Material consuniption 2kgs 2.5 kgs
    Direct Wages €20 €10
    Machine Time : Machine X 3 0 minutes 45 minutes
    Machine Y 36 minutes 30 minutes
    Sale Price €160 €175
    Total hours available: ................................ Machine X - 5,000 hours
    Machine Y - 5,200 hours
    Raw material available is 15,000 kgs. @ € 10 per kg.
    Variable overheads per machine hours: ....... Machine X -€ 70
    Machine Y - € 80
    Required
    (i) Identify the spare part which will optimize contribution at the offered price.
    (ii) If CIAT Cars offers € 25 per hour of unutilized machine hours to Precise Vision provided
    it reduces the sale price by 10% of the.spare part identified in (a) above, should the offer be
    accepted? (10 marks)

    a) Royal Exports Ltd sells its product at € 45 per unit. During the quarter ending 31 st March,
    it produced and sold 24,000 units and suffered a loss of € 15 per unit. If the volume of sales is
    raised to 60,000 units, it can Cam a profit of € 12 per unit. You are required to calculate:

    (i) BEP in Rupees.


    (ii) Profit if sales volume is 75,000 units.
    (iii)Minimuni level of production where the Company need not to close the production if
    unavoidable Fixed cost is € 4,00,000. (5 marks)

    2L£
    }-

    Q4)VidyutLinritedcanproduce400000unitsofaproductat100%capacity.Thevariable
    productioncostsareRs50perunitandtheVariablesellingexpensesareRsl5perunitsold.
    TheBudgetedfixedproductionoverheadswereRs36,00,000p.a.andtheFixedselling
    expenseswereRs12,00,000.Duringtheyearended31stMarch,2021thecompanyworkedat
    90%ofitscapacity.Thefollowingdatafortheyearisavatable:

    360000 units280000units
    Units produced
    Units sold at Rs 85 per unitOpeningstock
    50000units dfi d ellin ex enses

    Fixedproductionoverheadsare absorbedonthebasis ofcapacity an Ke s g parerecoveredasaperiodcost.Openingstockmaybevaluedatthecurentyear'srateonly.+

    ActualFixedoverheadexpensesincuredfortheyearwasRs33,00,000.Calculatetheprofit
    fortheyearended31StMarch,2021.

    A) On the basis of Absorption costing


    (10 marks)
    a) On the basis of Marginal costing

    You might also like