Professional Documents
Culture Documents
Faculty of Commerce
January -2017
Assignment -1
Q-1 FOC ltd. Produces three products arts ,science and commerce by using raw material for the
same quantity and labour force with the equal skills . For the year 2016-2017. Following data
given below . ( 20 Marks)
Per unit of raw material cost rs10 and the wage per hour is rs 20 the variable overheads expense
are 25% 20%and 10% respy. Of the direct labour
The fixed cost is rs 120000 for the period 30000 units of raw material and 35000 labour hours
are available for the next year.
Calculate the sale mix to earn the maximum profit for the next year.
Q-2 (A) Pratikena ltd provides the following information relating to its production ( 10 Marks )
1)Contribution =_______________
a)Selling price + Variable cost
b)Selling price variable cost
c)Fixed cost + variable cost
d)Selling price fixed cost variable cost
2) The costing method which shows relationship between cost sales volume and profit is called
a) breakeven point
b) cost - volume - profit analysis
c) margin of safety
d) contribution
3)For the production of a product if fixed cost is Rs.4000 variable cost is Rs.5 per unit in selling
price is Rs.10 per unit find out the sale is required and breakeven point
a) 400 units
b) 200 units
c) 600 units
d) 800 units
4)Which of the following costing method is useful to every units of industries as well as it is
useful with other costing method in the same unit
a) process costing
b) operating costing
c) unit costing
d) marginal costing
5) In marginal costing which two lines Will be intersect each other to find the breakeven point
a) total cost line and sale line
b) total cost line and fix cost line
c) total cost line and variable cost line
d) total cost a line profit line
6) variable cost is Rs.20 per unit and fixed cost is Rs.40,000 if breakeven point is reduced to
2000 unit find out the new selling price per unit
a)Rs.10
b)Rs.30
c) Rs 20
d)Rs.40
7) variable cost is Rs.42 selling prices Rs.50 for manufacture of one unit 2KG's of raw material
is used find a conception per KG of material
a) Rs2
b)Rs6
c)Rs4
d)Rs8
10) sale units 30,000 fixed expense Rs.5, 40,000 breakeven sale units 18,000 if sale price per
unit is Rs.70 calculate variable expense per unit
a)Rs.50
b)Rs.35
c)Rs. 40
d) Rs.45
Q.2.
(A) Calculate Material Variances from the following information of a factory: (10)
(B) From the following information, calculate Direct Labour Cost Variance: (10)
STANDARD ACTUAL
HOUR RATE LABOUR HOURS RATE LABOUR
S (Rs.) (Rs.) (Rs.) (Rs.)
SKILLED 1000 3.00 3,000 1,400 3.20 4,480
UNSKILLED 600 1.20 720 600 1.00 600
1,600 3,720 2,000 5,080
Q.3. OBJECTIVES:
5. From the above figures, determine the favourable Material Usage Variance:
(A) Rs. 2500 (B) Rs. 4000 (C) Rs.7500 (D) Rs.10000
Q.1 (A) Mr. Raj owns a travel bus, which runs 25 days in a month according to the (20)
following schedule :
(i) Ahmedabad to Surat and back the same way :
One side distance 200 km.
Days run 10
Occupied seating capacity 90%
(ii) Ahmedabad to Rajkot and back the same way :
One side distance 100 km.
Days run 10
Occupied seating capacity 80%
(iii) Ahmedabad Local :
Distance covered per day 100 km.
Days run 5
Occupied seating capacity 100%
(iv) Other informations :
Cost of bus Rs. 20,00,000
Depreciation annual 12%
Salary of driver p.m. Rs. 15,00
Salary of conductor p.m. Rs. 10,000
Other adminatrative expenses p.m. Rs. 38, 500
Insurance annual 3%
Road tax-annual Rs. 6,000
Repair and Maintenance p.m. Rs. 1,000
Disel consumption 4 km. per letre.
Disel price Rs. 35 per letre
Lubricant oil Rs. 50 per 100 km.
(v) The bus has a capacity of 50 persons.
From the above informations calculate fare per passenger km. if he wants to earn 50% profit
on his taking.
Calculate the passenger fare for Ahmedabad to Surat and Ahmedabad to Rajkot.
Q.2 (A) City Bus Service Ltd. Runs the following fleet of buses within the limits (10)
of Rajkot city :
Carrying Capacity :
10 Buses 60 passengers
15 Busses 50 Passengers
On an average each bus makes 10 trips a day covering a distance of 8 km. in each trip and
75% of the seats are occupied. The annual records show that 5 buses are generally required
to be kept away from roads each day for repairs. The following expenses were incurred by
the company during March, 2016.
Q.2(B) A Transport company supplies the following details in respect of 5 tone capacity. (10)
a) Theatre b) Railways
c) Publication d) Hotel
4) Which of folloeing items is considered as a fixed cost from the view point of a transport
undertaking?
a) Passenger km b) Ton km
a) Hospital b) Hotel