IBS paras PGPM PROGRAM CLASS OF 2019 END SEMESTER EXAMINATION Campus MUMBAL Semester Course | Management Accounting & Cont | voaae [awa 502 Tobe lied by the candidate ENROLLMENT NO. This question booklet comprises of Part A, Part B & C. Parta: {Pata consist of ster ste question. The tre alate complet Pat Ai. 30 nines, Part: li, Part B consists of 4-6 questions including testing your understanding of basie concepts, conceptual understanding, analytical ability and situational analysis but nat limited to this order. i, Time alloted to complete Part Bis 90 minutes. Parte: ly: Part C consists of 1-2 case lets to test analytical bilty, situational analysis and application of concepts Time allotted to complete Part C is 60 minutes. vi Total duration of the examination is 3 hours, INSTRUCTIONS TO CANDIDATES | Answer Part A Part B & Part C in SINGLE ANSWER BOOKLET. Write your enrollment number on the first page of the answer book at the space provided only. All rough work may be done on any blank page in the answer book Pencil should not be used for answering. The unused portion of the answer book must be boldly crossed prior to submitting Attempt all questions Marks are indicated agairist each question.PART- A Short note questions on basic concepts and application of concepts ‘Total Marks: 30 Maximum Time: 30 Minutes Q.1 From the following, calculate P/V Ratio, B.E.P. and MOS. (5 Marks) Rs. Sales 1, 00,000 Fixed Cost 20,000 Variable Cost 60,000 Q.2 The sales director of a Narmada Manufacturing Company reports that néxt year he expects to sell ),000 units of a particular product. The production manager consults the storekeeper and casts his figures as follows: (5 Marks) Two kinds of raw materials A and B are required for manufacturing the product. Each unit of the product requires 2 units of A and 3 units of B. The estimated opening balances at the commencement of the next year are Finished products 10,000 units Raw materials A: 12,000 units; B 15,000 units. ‘The desirable closing balances at the end of the next are finished products: 14,000 units; A: 13,000 units; B 16,000 units. Draw up a materials purchase budget for the next year Q3 What is ‘Responsibility Accounting? Discuss its three advantages. (S Marks) Q4 Define “Budgetary Control’, What are its features? (5 Marks) Q.5 What is “Divisional Performance Appraisal”? How is ‘Divisional Performance Measured? (5 Marks) Q.6 — Whatis ‘Activity Based Costing’ [ABC]? What are ‘Cost Drivers’ in ABC? (5 Marks) PART-B Basic concepts, conceptual understanding, Analytical ability and situational analysis ‘Total Marks: 40 Maximum Time: 90 Minutes Q.7 The following data have been extracted from the books ef M/s. Moon Shine Industries Ltd., for the calendar year 2017: (10 Marks) Rs. Opening Stock of Raw Material 25,000 Purchases of Raw Material 85,000 Closing Stock of Raw Material 40,000 Carriage Inward 5,000Q8 Wages = Direct 75,000 ~ Indirect 10,000 Other Direct Charges 15,000 Rent Rates ~ Factory 5,000 -- Office 500 Indirect consumption of Material 500 Depreciation ~ Plant 1,500 -- Office Furniture 100 Salary ~ Office 2,500 ~ Salesmen 2,000 Other Factory Expenses 5,700 Other Office Expenses 900 Managing Director’s Remuneration 12,000 Other Selling Expenses 1,000 Travelling Expenses of Salesmen 1,100 Carriage & Freight Outward 1,000 Sales 2, 50,000 Advance Income Tax Paid 15,000 Advertisement 2,000 Dividend Paid 25,000 Managing Director’s remuneration js to be allocated to factory, office and selling in 2: From the above information, prepare a Cost Sheet, showing the various break-ups. Everest Snow Co. manufactures & sales directly to consumers 10,000 Jars Per month @ Rs.1.25 per Jar. The Company's normal production capacity is 20,000 Jars per month. An analysis of cost for 10,000 Jars per month is given below: Rs Direct Material 1,000 Direct Labour 2,475 Power Cost 140 iscellaneous Supplies 430 Cost of Jars 600 Fixed Expenses of Manufacturing, Sel & Administration 7,955 Total 12,600 ‘The Company has received an offer for export of 1,20,000 jars per annum @10,000 jars per month under a different brand name. at Rs.0.75 per Jar. Write a short report on advisability or otherwise of accepting the export offer. (10 Marks) A factory engaged in manufacturing “Plastic Buckets’ is working to 40% capacity and produces 10,000 Buckets per annum. The present cost break-up for one Bucket is as under: Rs, Materials 10 Labour Cost 3 Overheads (60% Fixed) 5 The Selling Price is Rs.20 per Bucket. At 50% factory capacity utilization, the Selling Price will fall by 3% and at 90% capacity utilization the Selling Price will fall by 5% accompanied by a similar fall in the price of Material. You areFequired to calculate the Protit at 50% the same capai and 90% capacities, and also calculate Break Cven Pomig of productions. (10 Mar Q.10 The Standard Material and Standard Price for manufact 1g one unit of Product Nos. 420 is given below: (10 Marks) Material Standard Material Standard Rate A 5Kg. @Rs. 4.00 B 3Kg. @Rs. 6.00 The actual production of Product Nos.420 is 400 units. Actual Material = A ——-2,500Kg. — @R8.3.90 Bo 1000Kg. @Rs. 6.25 Calculate: 1 2. Material Price Variance; 3. Material Usage Variance; 4. Material Mix Variance; 5. Material yield Variance. PARTC Case Analysis/case —lets/Applications of concepts Total Marks: 30 Maximum Time: 60Minutes Q.11 _S. K Brothers propose to approach the bankers for temporary overdraft facility for the period from October 2017 to December 2017. During this period of these three months, the firm will be manufacturing mostly for stock. You are required to prepare a cash budget for the above period. (15 Marks) Month Sales (Rs.) Purchases (Rs.) Wages (Rs.) August 3,60,000 2,49,600 24,000 September 3,84,000 2,88,000 28,000 October 2,16,000 4,86,000 22,000 November 348,000 4,92,000 20,000 December 2,52,000 5,36,000 30,000 (a) 50% of credit sales are realized in the month following the sales and remaining 50% in the second following, (b) Creditors are paid in the month following the month of purchase (©) Estimated cash as on 1-10-2017 is Rs.50, 000 Q.12, M/s. Always Happy Co. Ltd. has three Production Departments: X, Y. and Z, and two Service Departments: A and B. ‘The following estimated figures for a certain period have been made available:Rs. Rent & Rates 0,000 Lighting & Electricity 1,200 Indirect Wages 3,000 Power 3,000 Depreciation of Machinery 20,00 Other Expenses 20,000 Following are further details which are also available: Total ) oy z@) a B Floor Space (Sq. Mts.) 10,000 2,000 2,500 3,000 2,000 500 Light Points (Nos.) 120 0 30 40 20 10 Direct Wages (Rs.) 20,000 6,000 4,000 6,000 3,000. 1,000 Horse Power of Machines 300 0 60 100 Cost of machinery (Rs.) 1, 00,000 24,000 32,000 40,000 2,000 2,000 Working hours 4670 3,020 3.050 The expenses of the Service Departments A and B are to be allocated as follows: AB Dept. A 20% - 10% Dept. B 410% 10% =~ You are required to calculate the Overhead Absorption Rate Per Hour in respect of the three Production Departments What will be the Total Cost of an article with Material Cost of Rs.80 and Labour Cost of Rs.40, which passes through X., Y and Z for 2, 3 and 4 hours respectively? 5 Marks)