Answer
any five questions:
1.
What are the objectives of cost accountancy? Discuss in details its scope &
limitations. (6+7+7)
2.
Describe in details the procedure of purchasing materials from outside. (20)
3.
How would you identify the direct & indirect labour cost? Give four example
of each of these cost. Distinguish
between the two. (8+4+8)
4.
What do you mean by process costing? State its characteristics. Compare process
costing with job costing. (5+7+8)
5.
Write short notes on the following: - (5x4)
a)
ABC analysis.
b)
Stares ledger.
c)
Normal wastage.
d)
Weighted average price.
6.
A worker is working at Rs.5 per hour & he is entitled to a clearness
allowance of Rs.56 per week of 48 hours. The time spent by him during the week
is as follows: - (20)
Job
No.1 34 hours
Job No.2 4
hours
Normal idle time 9
hours
Abnormal idle time 6
hours
He
is entitled to an incentive bonus under the rowan system; such bonus is being
calculated on the basic wages only. Standard time allowed is 25 hours for job
no.1 & 15 hours for job no.2. Calculate his earning for the week & show
how the total amount of wages shall be treated for costing purpose.
7. From the data given below, calculate the
material price variance, material wage variance & material mixture
variance: (20)
Consumption
per 100 units of product:
Raw
material Standard Actual
A 40 units @ Rs50 per unit 50 units @ Rs50
per unit
B 60
units @ Rs40 per unit 60
units @ Rs45 per unit
8.
Calculate the machine hour rate in respect of a machine from the following
information. (20)
Cost
of the machine Rs58000
Estimated scrape value Rs3000
Estimated working life 20,000
hours
Estimated cost of maintenance during
working life of machine Rs12000
Cost of power used for the machine Rs1
per hour
Rent per month (10% to be charged for this
machine) Rs1500
Normal machine running hours during a month 180
hours
Standing charged other then rent per month Rs200