Cost and Management Accounting - May 2019

(a) Following data is available for ABC Ltd.: Standard working hours 8 hours per day of 5 days per Maximum Capacity 60 employees Actual working 50 employees Actual hours expected to be worked per four week 8,000 hours Standard hours expected to be earned per four week 9,600·hours Actual hours worked in the four week period 7,500 hours Standard hours earned in the four week period 8,800 hours The related period is of four weeks. Calculate the following Ratios …

Areeba Private Limited has a normal production capacity of 36,000 units of toys per annum. The estimated costs of production are as under: (i) Direct Material (ii) Direct Labour ` 40 per unit ` 30 per unit (subject to a minimum of ` 48,000 p.m.) (iii) Factory Overheads: (a) Fixed ` 3,60,000 per annum (b) Variable ` 10 per unit 54 INTERMEDIATE (NEW) EXAMINATION: MAY, 2019 (c) Semi-variable ` 1,08,000 per annum up to 50% capacity and additional ` 46,800…

(a) A gang of workers normally consists of 30 skilled workers, 15 semi-skilled workers and 10 unskilled workers. They are paid at standard rate per hour as under: Skilled ` 58 INTERMEDIATE (NEW) EXAMINATION: MAY, 2019 Semi-skilled ` 65 Unskilled ` 50 In a normal working week of 40 hours, the gang is expected to produce 2,000 units of output. During the week ended 31 st March, 2019, the gang consisted of 40 skilled, 10 semi-skilled and 5 unskilled workers.…

(a) X Ltd. distributes' its goods to a regional dealer using single lorry. The dealer premises are 40 kms away by road. The capacity of the lorry is 10 tonnes. The lorry makes the journey twice a day fully loaded on the outward journey and empty on return journey. The following information is available: Diesel Consumption 8 km per litre Diesel Cost ` 60 per litre Engine Oil ` 200 per week Driver's Wages (fixed) ` 2,500 per week Repairs…

Gaurav Private Limited is manufacturing and selling two products: 'BLACK' and 'WHITE' at selling price of ` 20 and ` 30 respectively. The following sales strategy has been outlined for the financial year 2019-20: (i) Sales planned for the year will be ` 81,00,000 in the case of 'BLACK' and ` 54,00,000 in the case of 'WHITE'. (ii) The selling price of 'BLACK' will be reduced by 10% and that of 'WHITE' by 20%. (iii) Break-even is planned at 70%…