Q1. Selling price is 300 RS ,variable cost is 240 Rs,fixed cost=2.

4L
a.find contribution -1mark
ans 60
S - V = 300 -240 = 60
Q2. Selling price is 220 RS ,variable cost is 165 Rs,fixed cost=2L
a.find PV ratio -1mark
Ans = 25%
PV Ratio = (S – V)/ S x 100
(55/ 220 ) x 100

Q3 Selling price is 80 RS ,variable cost is 50 Rs,fixed cost=2,40,000

a.find BEP in Units and Rupees -3mark
unit = 240000 / 30 = 8000 units
rs 8000 x 80 = 640000
Answer 8000 unit and Rs. 640000

Q4.Selling price is 120 RS ,variable cost is 80 Rs,fixed cost=2L a.find BEP in units and rupees -
3mark
BEP Units = F/C per unit
Ans BEP Units = 200,000/ 120 – 80 = 5000 units
Bep Rs. = 5000 unit X 120 = 6,00,000

Q5.Contribution p u at present is Rs15 FC Rs 300000 Desired profit Rs360000

if VC are increased by 2.5 pu then what will be the desired sale to get same profit
Ans = 52800 units
Desired sales Units= FC + Desired profit/ contribution per unit
300000+360000/12.5 = 52,800 Units

Q6.selling price is 100 rs, variable cost is 50,fixed expense is 10000pa

find the sales units to earn a profit of 10000.
Ans = 400 units
DS = F + P/ Contribution pu
(10000 +10000)/ 50
= 400

Q7.Pv ratio is 50%,margin of safety is 280000 calculate the profit-3marks

Margin of safety = profit/pv ratio
(280000*50)/100
Answer Rs.140,000

Q8.The capacity for the prodn for the comapny is 500 units pm VC is Rs 100 pu
SP is Rs 150 pu Fixed cost is Rs 9000 p.a Find the value of profit if the sales units is 300 units
Sol : desired sales = FC + Desired profit/ contribution per unit
Answer 300 = (9000 + P/L)/150 - 100 = 6000

Q9 Company sold 26000 units goods Op stock is 14000 units cl stock is 18000 units how
much the company need to produce to satisfy the given sale
Sol : Sale unit = Op. Stk + prodn - Cls. Stk
26000 = 14000 + prodn - 18000
= 30000

Q10.BEP is 10000 units,the variable cost at this level is 3 Lac fixed cost is 2Lac
contribution per unit is 20 find the selling price per unit
v = 300000/10000 = 30
C=S-V
20 = S - 30
Answer = Rs. 50
Q11.Unit produced is 10,000 ,Variable cost is 60 Rs,Fixed cost is 20,000. What will be cost of
closing stock as per Marginal costing and traditional Costing
a. as per marginal costing = 60 x 10000 = 600000;
b. as per traditional costing = 600000+20000 = 620000
Ans. Rs. 6,00,000 and Rs. 6,20,000

Q12. To produce Product P the component required are

A 4units @ 5
B 6 units @ 2
The production is expected to be 20000unit of Product P
Calculate the material Cost?
A 450000
B 640000
C 600000
D 500000
Ans B
Solution = ( 20,000 x 4 x5) + ( 20,000 x 6 x 2 )
= 4,00,000 + 2,40,000
= 6,40,000

15)
A joiner charges customer Rs15 per hour, each hour incurring an estimated variable cost of
Rs6. Total fixed cost for next year is estimated at Rs6000 for clerical support and Rs3000 for
rent of premises.What is the joiner's breakeven point?
A. 1000
B. 1500
C. 2250
D. 5000
Ans A
3 BEP Units = F/ contr per unit =6000+3000=9000/9(15-6) =1000

Q16. Atul LTD gives u the following details:

Standard Hours - 75000hrs
Actual hours worked - 72000hrs
Find out the capacity ratio.
Capacity Ratio: Actual hours worked / budgeted hours X 100
Answer 0.96 or 96%

17) Q18. Find overhead variance

Budgeted
Actual
Output 10000 10000
overhead 800000 600000
a) 200000 F
b) 200000A
c) 50000 F
d) 50000 A

Ans ) A

Q19. Find overhead variance Budgeted Actual

Output 10000 13000
overhead 500000 600000
a) 100000 F
b) 100000A
c) 50000 F
d) 50000 A
Q18. Find overhead variance
Budgeted Actual
Output 10000 10000
overhead 800000 600000
a) 200000 F
b) 200000A
c) 50000 F
d) 50000 A
Ans. A

Q19. Find overhead variance

Budgeted Actual
Output 10000 13000
overhead 500000 600000
a) 100000 F
b) 100000A
c) 50000 F
d) 50000 A
Ans C
Output BOH
10000 5,00,000
13000 x
BOH = (13000 x 5,00,000)/ 10000
= 6,50,000
Variance = 650000 – 600000
= 50000
Q21 Normal loss is 10 % input is 950 units, abnormal loss is 15 then output is
A 840
B 750
C 740
D 800
Ans A
Input 950
-scrap 95
Expected output 855
-Abnormal loss 15
Actual Output 840

22 input 1100 units normal loss is 10% output is 970 what is Abnormal loss units
A 20
B 15
C 25
D 30
Ans A
Input 1100
-scrap 110
Expected output 990
Actual Output 970
-Abnormal loss 20