1. A company manufacturing Distempers operates on a standard costing system.

The standard cost of one of the products of the company shows the following standards: MATERIAL QUANTITY(KGS.) A 40 B 10 C 50 MATERIAL COST PER UNIT STD. PRICE/KG. 75 50 20 TOTAL 3000 500 1000 4500

The standard input mix is 100 kgs. And the standard output of the finished product is 90 kgs. The actual results for period are: A B C 240000KGS @Rs. 80/Kg 40000KGS @Rs. 52/Kg 220000KGS @Rs.21/Kg

Actual output 4,20,000 kgs. Required to calculate all material variances.

2. Sudeep Processors Ltd. produces a commodity by blending two raw materials A and B. The following are the details regarding the raw materials: Material Standard Standard price mix per kg A B 30% 70% Rs.4.25 Rs.3.50

The standard process loss is 10%. During the month of September 2007, the company produced 3,960 kg of finished product. The position of stock and purchases for the month of September 2007 is as under: Material Stock as on September 01, 2007 46 kg 92 kg Stock as on September 30, 2007 56 kg 112 kg Purchases during September 2007 1,740 kg 2,660 kg Rs.7,134 Rs.9,576

A B

The material yield variance of the company was (a) Rs.111.75 (A) (b) Rs.111.75 (F) (c) Rs.114.00 (A) (d) Rs.113.89 (F) (e) Rs.113.89 (A).

3. Sigma Ltd. has furnished the following standard labor component and the actual labor component for a job in a week: Skilled SemiUnskilled Particulars workers skilled workers workers i. Standard number of workers in the gang ii. Standard wage rate per hour (Rs.) iii. Actual number of workers employed in the gang during the week iv. Actual wage rate per hour (Rs.) 28 14 18 8 4 6 32 12 12 10 6 8

During the 40 hours working week, the gang produced 1,800 standard labor hours of work. 3. Vaishali Ltd. has furnished the following production budget pertaining to a single product for the month of September 2007: Production 2,25,000 units quantity Production costs: Material 3,85,000 kg at Rs.5.25 per Direct labor kg 1,80,000 hours at Rs.5.10 per hour Variable Rs.4,41,000 overheads Fixed overheads Rs.12,15,000 The variable overheads are absorbed at a predetermined direct labor hour rate and the fixed overheads are absorbed at a predetermined rate per unit of output. During the month the actual production was 2,15,000 units and the following costs were incurred: Material 3,21,050 kg at Rs.15,85,785 Direct labor 1,68,880 hours at

Variable overheads Fixed Rs.12,03,800 overheads The variable overhead efficiency variance and fixed overhead volume variance were (a) Rs.7,644 (F) and Rs.54,000 (A) respectively (b) Rs.4,300 (F) and Rs.54,000 (A) respectively (c) Rs.4,300 (F) and Rs.11,200 (F) respectively (d) Rs.7,084 (F) and Rs.11,200 (F) respectively (e) Rs.7,644 (F) and Rs.26,000 (F) respectively. 4. Pummy Ltd. presents the following data for the 2nd quarter of 200708: Particulars Budget Actual Number of working 65 72 days Man hours per day 830 ? Output per man hour 1 ? (units) Total output (units) 53,950 75,325 Fixed overhead Rs.86,320 Rs.88,100 expenditure The overhead efficiency variance of the company for the quarter was Rs.1,840 (F). The actual man hours per day (approximately) were

Rs.9,52,140 Rs.4,36,700

(a) (b) (c) (d) (e)

1,062 hours 965 hours 1,177 hours 1,030 hours 1,141 hours.