MCS

Assignment 1

IMDR

SOLUTION 1:
ITEM
Fire insurance of building
Rent
Delivery Expenses
Purchase department expenses
Credit department expenses
General administration expenses
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Sales assistants salary
Personal departments expenses
Sales Commission

BASIS
Value of building
Area
Distance and amount of goods
No. of purchase orders
Credit sales
Direct Wages
Sales
No. of Sales Assistants
No. of Employees
Sales Value

SOLUTION 2:
EXPENSES
Expenses
Distribution of boiler
expenses(20:40:30:10)
Distribution of Pump
Expenses (40:20:20:20)
Distribution of boiler
expenses (20:40:30:10)
Distribution of pump
Expenses (40:20:20:20)
Distribution of boiler
expenses(20:40:30:10)
Distribution of pump
Expenses (40:20:20:20)

PRODUCTION DEPARTMENT
A
B
C
4,00,000
3,50,000
2,50,000
23,400
46,800
35,100

SERVICE DEPARTMENT
Boiler
Pump
1,17,000
1,50,000
(1,17,000) 11,700

4,23,400
64,680

3,96,800
32,340

2,85,100
32,340

nil
32,340

1,61,700
(1,61,700)

4,88,080
6468

4,29,140
12,936

3,17,440
9,702

32,340
(32,340)

nil
3,234

4,94,548
1,294

4,42,076
647

3,27,142
647

nil
646

3,234
(3,234)

4,95,842
129

4,42,723
258

3,27,789
194

646
(646)

nil
65

4,95,971
29

4,42,981
19

3,27,983
17

nil
-

65
(65)

4,96,000

4,43,000

3,28,000

nil

nil

PGDM 2
(Rahul Agarwal, Aditi Sharma, Himanshu Bandil)

GROUP 1

500 Service Department P Q R 45.000) 3.000 4.000 28.33.500 8.500 16.00.500 57.000 nil -- 80.500 1. Himanshu Bandil) 4000 40 GROUP 1 .000 83.000 18.000 (1.33.19.000 1. meters S: Direct labor hours (a)& (b) Expenses Expenses Distribution of P (100:125:85:10:50:40:50) Distribution of Q (4:3:4:6:3) Distribution of R (30:15:15:10) Distribution of S (4:3:4) Direct labor Hour Overhead recovery rate (per hour) Production Department X Y Z 1.000 28.000 10.76.000 12.000 nil nil nil nil 4000 75 3000 45 PGDM 2 (Rahul Agarwal.03.000 24.000 1.MCS Assignment 1 IMDR SOLUTION 3: Overhead allocation: P: Number of employees Q: direct Labor Hours R: Area in sq.000 12.000) 24.000 88.000 2.000 24.500 ---- nil -- 1. Aditi Sharma.000) 5.000 5.000 12.60.000 35.500 16.07.000 (80.93.000 19.000 1.000 2.09.000 91.000 --- --- nil -- 66.000 (66.000) 47.000 1.17.000 (45.000 76.05.000 1.36.35.000 64.000 75.000 2.000 1.000 S 30.

1 and 2 X= 5000 + 300 + 0.3 x) ------.eq. 1 Y=3000 + 0. 2 X= 5000 + 0.MCS Assignment 1 IMDR SOLUTION 4 : X=5000 + 0.1 (3000 + 0.3 x 0.97 Real expense of department X= 5464 Y= 3000 + 0.1y -----. Aditi Sharma.3(5464) Y= 3000 + 1639 Real expense of department Y = 4639 PGDM 2 (Rahul Agarwal.from eq.3 x -----. Himanshu Bandil) GROUP 1 .97x = 5300 X= 5300/0.eq.

150 Z 19. Himanshu Bandil) GROUP 1 .100 14.460 56 16.516 11 16.500 Service A 6.400 19.46 PGDM 2 (Rahul Agarwal.913 7 22.250) Total Expenses Departments Expenses Distribution of A (2:3:4:1) Distribution of B (4:2:3:1) Distribution of A (2:3:4:1) Distribution of B (4:2:3:1) Working Hours Absorption rate(per hour) Production X Y 15. Aditi Sharma.000 X 2000 Y 2500 Z 3000 A 2000 B 500 1200 200 300 400 200 100 3000 900 600 900 450 150 20.527 16. (12:16:20:1:1) Direct Wages (6:4:6:3:1) Horse Power (6:3:5:1) Total 10.632 112 278 (278) nil 27 17.100 14.75 3020 5.300 6.775 (2775) 17.250 (6.350 1.250 2.744 9 nil nil 27 (27) 17.830 83 22.753 nil nil 4670 3.110 16.000 6000 4000 6000 3000 1000 3000 1200 600 1000 200 -- 15.875 B 2.275 555 21.400 1.MCS Assignment 1 IMDR SOLUTION 5: (a) Expenses Rent & Rates Lighting & Electricity Indirect Wages Depreciation Other Expenses Power Basis Floor Space(4:5:6:4:1) Light Points (2:3:4:2:1) Direct Wages (6:4:6:3:1) Cost of M/c.250 1.920 22.150 625 16.000 4800 6400 8000 400 400 20.300 2.800 832 nil 278 2.60 3050 7.

75*2= 7.14 GROUP 1 .8 Department Z Expenses = 7.60*3= 16.MCS Assignment 1 IMDR (B) Material Cost = 80 Direct Wages = 40 Prime Cost = 120 Department X Expenses = 3.14 = PGDM 2 (Rahul Agarwal. Himanshu Bandil) 174.46*4 = 29.84 54.5 Department Y Expenses = 5. Aditi Sharma.14 Cost of Article = 120+ 54.

000 2.000 60.000 1995 1.00.250 WORKING NOTES:  Let the output for 1994 be 100 So.000 20.000 +6000 = 36.000 36.000 30.000 2. actual output = 150-15= 135 Now.000+ 10000 = 30.000 30. Expected output with increase in 50% employees = 100*50/100 = 50 = 100+50 = 150 But 10% efficiency went down= 10/100*150 =15 So.10.84.000 PGDM 2 (Rahul Agarwal. Himanshu Bandil) GROUP 1 . Aditi Sharma. amount of 135 article= 100* 135 = 135000 5% decrease in direct material = 5/100*135000 = 6750  Direct material cost = 135000-6750=128250 Direct wages = 60000 * 50/100 =30000  Direct wages = 60000 +30000 = 90000 Fixed expenses increased by 20% = 30000* 20/100 = 6000  Fixed expenses = 30.MCS Assignment 1 IMDR SOLUTION 6: BUDGET Direct Material Direct wages Factory Expenses  Direct  Variable Total 1994 1.28.250 90.000 Variable expenses 50% increase in employee = 50/100 * 20000 = 10000  Variable expenses = 20.

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