Cost and Managerial Accounting 121. Calculate workers left and discharged from the following: Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method and Separation method. No. of workers replaced during the quarter is 80.
112 80 48 64 View answer Correct answer: (C) 48
122. Allotment of whole item of cost to a cost centre or cost unit is known as:
Cost Apportionment Cost Allocation Cost Absorption Machine hour rate View answer Correct answer: (B) Cost Allocation
123. CG Co manufactures a single product T. Budgeted production output of product T during June is 200 units. Each unit of product T requires 6 labour hours for completion and CG Co anticipates 20 per cent idle time. Labour is paid at a rate of Rs7 per hour. The direct labour cost budget for March is
Rs 6,720 8,400 10,080 10,500 View answer Correct answer: (D) 10,500
124. The P/v ratio of a company is 50% and margin of safety is 40%. If present sales is Rs. 30,00,000 then Break Even Point in Rs. will be
Rs. 9,00,000 Rs. 18,00,000 Rs. 5,00,000 None of the above View answer Correct answer: (B) Rs. 18,00,000
125. ABC analysis is an inventory control technique in which:
Inventory levels are maintained Inventory is classified into A, B and C category with A being the highest quantity, lowest value. Inventory is classified into A, B and C Category with A being the lowest quantity, highest value Either b or c. View answer Correct answer: (C) Inventory is classified into A, B and C Category with A being the lowest quantity, highest value
126. Calculate the value of closing stock from the following according to FIFO method: 1st January, 2014: Opening balance: 50 units @ Rs. 4 Receipts: 5th January, 2014: 100 units @ Rs. 5 12th January, 2014: 200 units @ Rs. 4.50 Issues: 2nd January, 2014: 30 units 18th January, 2014: 150 units
Rs. 765 Rs. 805 Rs. 786 Rs. 700 View answer Correct answer: (A) Rs. 765
127. Service departments costs should be allocated to:
Only Service departments Only Production departments Both Production and service departments None of the production and service departments View answer Correct answer: (C) Both Production and service departments
128. Which of the following would explain an adverse variable production overhead efficiency variance?
Employees were of a lower skill level than specified in the standard Unexpected idle time resulted from a series of machine breakdown Poor Quality material was difficult to process (1), (2) and (3) (1) and (2) (2) and (3) (1) and (3) View answer Correct answer: (D) (1) and (3)
129. Which of the following statements is/are correct?
A materials requisition note is used to record the issue of direct material to a specific job. A typical job cost will contain actual costs for material, labour and production overheads, and non –production overheads are often added as a percentage of total production cost The job costing method can be applied in costing batches (1) only (1) and (2) only (1) and (3) only (2) and (3) only View answer Correct answer: (C) (1) and (3) only
130. A job is budgeted to require 3,300 productive hours after incurring 25% idle time. If the total labour cost budgeted for the job is Rs36,300. What is the labour cost per hour( to the nearest cent)?
Rs 8.25 Rs 8.80 Rs 11.00 Rs 14.67 View answer Correct answer: (A) Rs 8.25