7/30/2019 MCC202 Summer Drive Assignment 2012

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ASSIGNMENTS

M.Com GeneralSemester-II

Subject Name: Advanced Cost Accounting

Subject code: MCC 202

Summer Drive 2012

4 credits (60 marks)

(BKID: B1472)

Set 1

Answer the following questions. Each question carries 10 marks.

1. What are the different types of cost sheet? Highlight its importance.2. What is contract costing? Discuss briefly the method of contract costing.3. Discuss the principles to be followed for cost determination under process costing.4. What are the problems with the ABC system?5. The following information is obtained from the costing records of a factory:

Actual total overheads Rs. 3,75,000 Units Produced 9,800

Actual hours worked 2,50,000 Units sold 9,000

Budgeted rate of recovery of Units in work-in-progress 200

overheads is Re. 1 per hour

On verification it was found that 25% of the unabsorbed overheads was due to increase

in cost of indirect material and indirect labour and 75% was due to inefficiency in the

factory. Show the effects on cost of units produced.

6. From the following particulars, prepare the Cost Sheet for Job No. 75 and find out thevalue of the job:

Materials issued for the job Rs. 6,000 Productive Wages Rs.4,600

Direct Expenses Rs.500

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Provide 60% on productive wages for works on cost and 12 % on works cost for

office oncost.

Profit to be realised on the selling price 15%

7/30/2019 MCC202 Summer Drive Assignment 2012

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ASSIGNMENTS

M.Com GeneralSemester-II

Subject Name: Advanced Cost Accounting

Subject code: MCC 202

Summer Drive 2012

4 credits (60 marks)

(BKID: B1472)

Set 2

Answer the following questions. Each question carries 10 marks.

1. Evaluate the advantages and disadvantages of marginal costing.2. Explain the various steps involved in the preparation of a master budget.3. Classify the different types of overhead variances.4. What is standard costing? Differentiate between standard costing and

historical costing.

5. Component SW-10X is made entirely in Machine Shop No. ASW-II. Material cost isRs.20 per component. Each component takes 6 minutes to produce and the machine

operator is paid Rs. 15 per hour. Machine-hour rate is Rs.72 per hour.

The setting up of the machine to produce the component takes 3 hours for the operator.

You are required to prepare cost sheets showing the setting-up costs and the production

costs, both in total (i.e., for the batch) and per component, assuming a batch size of:

(a) 100 components,

(b) 150 components, and

(c) 200 components.

6. If margin of safety is Rs.2,40,000 (40% sales) and P/V ratio is 30% of AB Ltd.Calculate its (1) Break-even Sales, and (2) Amount of profit on sales of Rs. 9,00,000.

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