Subject: CA TY Test Paper (A) Marks: 20

Chapter: Marginal & Standard Costing Date: 18/02/2024

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Q.1 The following figures relate to Amit Ltd. (8M)

Selling Price per unit Rs. 40
Direct Materials per unit Rs. 12
Direct Labour per unit Rs. 9
Other Variable overheads per unit Rs. 7
Fixed Factory overheads Rs. 3,20,000
Fixed Office overheads Rs. 4,30,000
Calculate: (i) P/V Ratio (ii) Break Even sales in Units and Rs. (iii) Sales to earn Profit of Rs.
4,50,000 (iv) New Break Even Point in Rs, and unit if total fixed overheads are increased by 15%.
Q.2. The following standards have been set to manufacture a product. (10M)
Particulars Rs Rs
Direct Materials:
4 units of X @ Rs 4 per unit 16
6 units of Y @ Rs 3 per unit _____18 34
Standard Material Cost
Direct Labour:
3 hours @ Rs 2 per units ______6
Standard Cost per unit 40
The company manufactured and sold 6,000 units of the product during the year, details of
direct material and labour cost being:
Particulars Rs Rs
Direct Materials:
25,000 units of X @ Rs 4.20 per unit 1,05,000
36,000 units of Y @ Rs 2.70 per unit ___97,200 2,02,200
Direct Labour:
17,000 hours @ Rs 2.20 per hour __37,400
Total 2,39,600
Calculate following statement:
1. Material Cost Variance 2. Material Usage Variance
3. Material Price Variance 4. Labour Cost Variance
5. Labour Efficiency Variance 6. Labour Rate Variance
Q.3 . Multiple Choice Questions: (2M)
1. Contribution equals:
(a) Sales minus cost of sales (b) Sales minus cost of production
(c) Sales minus variable costs (d) Sales minus fixed costs
2. The standard which can be attained under the most favorable conditions possible
(a) Ideal Standard (b) Expected Standard
(c) Current Standard (d) Normal Standard

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Solutions
Q.1.

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 Q.2.

Q.3 . Multiple Choice Questions:

1. Contribution equals:
(a) Sales minus cost of sales (b) Sales minus cost of production
(c) Sales minus variable costs (d) Sales minus fixed costs
2. The standard which can be attained under the most favorable conditions possible
(a) Ideal Standard (b) Expected Standard
(c) Current Standard (d) Normal Standard

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