Solapur University Question Paper
M.Com. – I (Semester – II) (Old) Examination, 2014
ADVANCED COSTING (Paper – II) (Gr.b)
Day and Date : Monday, 21-4-2014 Max. Marks : 50
Time : 11.00 a.m. to 1.00 p.m.
N. B. : • All questions are compulsory.
• Figures to the right indicate full marks.
• Use of calculator is allowed.
1. Choose correct alternative :
1) Standard cost is a _____________ cost.
a) Predetermined b) Prematured c) Prepaid d) Prephoned
2) Aggregate of material price variance and material usage variance is
_____________ variance.
a) Material mix b) Material cost
c) Yield d) Profit
3) _____________ variance is arised only where two or more type of materials
are used.
a) Material cost b) Material price
c) Material usage d) Material mix
4) Labour _____________ variance is always unfavourable.
a) Cost b) Rate c) Idle time d) Mix
5) _____________ budget is one which is prepared keeping in mind one level of
output.
a) Fixed b) Flexible c) Master d) Cash
6) When all functional budgets have been prepared, these are summarised into
what is known as a _____________ budget.
a) Fixed b) Flexible c) Master d) Cash
SLR-N – 32 -2-
7) The production budget is the _____________ step in budgeting
manufacturing activities.
a) Last b) Final c) Initial d) Second
8) Productivity is the ratio of _____________
a) Input to output
b) Output to input
c) Input to factors of production
d) Output to one factor of output
9) _____________ is a keystone of budget structure.
a) Sales budget b) Master budget
c) Cash budget d) Flexible budget
10) _____________ is a plan for proposed outlay on fixed assets.
a) Capital expenditure budget b) Cash budget
c) Fixed budget d) Flexible budget 10
2. Write short notes on :
a) Standard costing and budgetary control
b) Uniform costing. (5+5)
3. a) In a factory, standard estimate for material for manufacture of 1000 units of
product Z is 400 kg at Rs. 2.50 per kg. When 2000 units of product Z produced
it is found that 825 kg of materials consumed at Rs. 2.70 per kg. Calculate
material variances.
b) With the following data at 60% activity. Prepare a budget at 80% and 100%
activity :
Materials Rs. 120 per unit
Labour Rs. 50 per unit
Expenses Rs. 20 per unit
Factory expenses (40% fixed) Rs. 60,000
Administration expenses (60% fixed) Rs. 40,000
Production at 60% activity 600 units (5+5)
-3- SLR-N – 32
4. The following information was obtained from the records of a manufacturing
unit using standard costing system :
Particulars Standard Actual
Production units 4000 3800
Working days 20 21
Overheads Rs. 52,000 51,000
You are require to calculate overhead variances. 10
OR
The standard cost card for one unit of a product shows the following cost for
material and labour :
Materials – 4 pieces @ Rs. 5.00
Labour – 10 hours @ Rs. 1.50
5700 units of the product were manufactured during the month of March 2012
with the following material and labour cost.
Materials – 26000 pieces @ Rs. 4.95
Labour – 56800 hours @ 1.52
Calculate appropriate material and labour variances.
5. The following are the estimated sales of a company for five months ending
Nov. 2011 :
Month Estimated sales units
July 2011 8,000
Aug. 2011 10,000
Sept. 2011 12,000
Oct. 2011 14,000
Nov. 2011 12,000
As a matter of policy, the company maintains the closing balance of finished
goods and raw materials as follows :
Stock item Closing balance of a month
• Finished goods 50% of the estimated sales for the next month
• Raw materials Estimated production for next month
Every unit of production requires 2 kg of raw material costing Rs. 5 per kg.
Prepare production budget and raw material purchase budget for 3 months ending
Sept. 2011. 10
OR
XYZ Company Ltd., has given the following particulars. You are require to prepare
cash budget for the three months ending 31-3-12 :
Month Sales Purchases Wages Expenses
2011-12 Rs. Rs. Rs. Rs.
Oct. 2011 1,20,000 90,000 8,000 2,000
Nov. 2011 1,50,000 1,00,000 8,400 2,400
Dec. 2011 1,60,000 1,10,000 9,600 2,800
Jan. 2012 1,40,000 1,00,000 12,000 3,200
Feb. 2012 1,25,000 80,000 10,800 3,600
Mar. 2012 1,20,000 75,000 9,200 4,000
It is estimated that :
20% sales will be on cash basis
Period of credit allowed to customer is one and half month
Period of credit allowed by supplier is one month
Lag in payment of wages 1/8th month
Lag in payment of expenses 1/4th month
cash bal. on 1st Jan. 2012 Rs. 25,000.
_____________
M.Com. – I (Semester – II) (Old) Examination, 2014
ADVANCED COSTING (Paper – II) (Gr.b)
Day and Date : Monday, 21-4-2014 Max. Marks : 50
Time : 11.00 a.m. to 1.00 p.m.
N. B. : • All questions are compulsory.
• Figures to the right indicate full marks.
• Use of calculator is allowed.
1. Choose correct alternative :
1) Standard cost is a _____________ cost.
a) Predetermined b) Prematured c) Prepaid d) Prephoned
2) Aggregate of material price variance and material usage variance is
_____________ variance.
a) Material mix b) Material cost
c) Yield d) Profit
3) _____________ variance is arised only where two or more type of materials
are used.
a) Material cost b) Material price
c) Material usage d) Material mix
4) Labour _____________ variance is always unfavourable.
a) Cost b) Rate c) Idle time d) Mix
5) _____________ budget is one which is prepared keeping in mind one level of
output.
a) Fixed b) Flexible c) Master d) Cash
6) When all functional budgets have been prepared, these are summarised into
what is known as a _____________ budget.
a) Fixed b) Flexible c) Master d) Cash
SLR-N – 32 -2-
7) The production budget is the _____________ step in budgeting
manufacturing activities.
a) Last b) Final c) Initial d) Second
8) Productivity is the ratio of _____________
a) Input to output
b) Output to input
c) Input to factors of production
d) Output to one factor of output
9) _____________ is a keystone of budget structure.
a) Sales budget b) Master budget
c) Cash budget d) Flexible budget
10) _____________ is a plan for proposed outlay on fixed assets.
a) Capital expenditure budget b) Cash budget
c) Fixed budget d) Flexible budget 10
2. Write short notes on :
a) Standard costing and budgetary control
b) Uniform costing. (5+5)
3. a) In a factory, standard estimate for material for manufacture of 1000 units of
product Z is 400 kg at Rs. 2.50 per kg. When 2000 units of product Z produced
it is found that 825 kg of materials consumed at Rs. 2.70 per kg. Calculate
material variances.
b) With the following data at 60% activity. Prepare a budget at 80% and 100%
activity :
Materials Rs. 120 per unit
Labour Rs. 50 per unit
Expenses Rs. 20 per unit
Factory expenses (40% fixed) Rs. 60,000
Administration expenses (60% fixed) Rs. 40,000
Production at 60% activity 600 units (5+5)
-3- SLR-N – 32
4. The following information was obtained from the records of a manufacturing
unit using standard costing system :
Particulars Standard Actual
Production units 4000 3800
Working days 20 21
Overheads Rs. 52,000 51,000
You are require to calculate overhead variances. 10
OR
The standard cost card for one unit of a product shows the following cost for
material and labour :
Materials – 4 pieces @ Rs. 5.00
Labour – 10 hours @ Rs. 1.50
5700 units of the product were manufactured during the month of March 2012
with the following material and labour cost.
Materials – 26000 pieces @ Rs. 4.95
Labour – 56800 hours @ 1.52
Calculate appropriate material and labour variances.
5. The following are the estimated sales of a company for five months ending
Nov. 2011 :
Month Estimated sales units
July 2011 8,000
Aug. 2011 10,000
Sept. 2011 12,000
Oct. 2011 14,000
Nov. 2011 12,000
As a matter of policy, the company maintains the closing balance of finished
goods and raw materials as follows :
Stock item Closing balance of a month
• Finished goods 50% of the estimated sales for the next month
• Raw materials Estimated production for next month
Every unit of production requires 2 kg of raw material costing Rs. 5 per kg.
Prepare production budget and raw material purchase budget for 3 months ending
Sept. 2011. 10
OR
XYZ Company Ltd., has given the following particulars. You are require to prepare
cash budget for the three months ending 31-3-12 :
Month Sales Purchases Wages Expenses
2011-12 Rs. Rs. Rs. Rs.
Oct. 2011 1,20,000 90,000 8,000 2,000
Nov. 2011 1,50,000 1,00,000 8,400 2,400
Dec. 2011 1,60,000 1,10,000 9,600 2,800
Jan. 2012 1,40,000 1,00,000 12,000 3,200
Feb. 2012 1,25,000 80,000 10,800 3,600
Mar. 2012 1,20,000 75,000 9,200 4,000
It is estimated that :
20% sales will be on cash basis
Period of credit allowed to customer is one and half month
Period of credit allowed by supplier is one month
Lag in payment of wages 1/8th month
Lag in payment of expenses 1/4th month
cash bal. on 1st Jan. 2012 Rs. 25,000.
_____________
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