Indian Institute of Management Kashipur

MBA 2022-23, Term III

Management Accounting
Quiz 3
Maximum Marks: 10 Time: 30 Minutes.
Name..................... Roll No………..
Section ……………..
Amesbury Construction constructs residential houses. It uses a job-costing system with two
direct-cost categories (direct materials and direct labour) and one overhead-cost pool
(assembly support). Direct labour-hours is the allocation base for assembly support costs.

For the year 2021, Amesbury budgets assembly-support costs to be Rs. 83,00,000 and direct
labour-hours to be 1,66,000.

At the end of 2021, Amesbury is comparing the costs of several jobs that were started and
completed in 2021. Two of these jobs are Laguna and Mission. There details are given below:

Laguna Mission
Construction period Feb–June 2021 May–Oct 2021
Direct material costs Rs. 106,760 Rs. 127,550
Direct labour costs Rs. 36,950 Rs. 41,320
Direct labour-hours 960 1,050

Direct materials and direct labour are paid on a contract basis. The costs of each are known
when direct materials are used or when direct labour-hours are worked.

In 2021, actual assembly-support costs were Rs. 65,20,000, and the actual direct labour-hours
were 1,63,000.

1) Compute the (a) budgeted overhead allocation rate and (b) actual overhead allocation
rate. (1+1= 2)

2) What are the job costs of the Laguna and the Mission using normal costing? (2)
3) What are the job costs of the Laguna Model and the Mission Model using actual
costing? (2)
4) Amesbury Construction uses normal costing. What will be the amount of over or
under absorbed overheads at the end of year 2021?
(4)
Name..................... Roll No………..
Section ……………..
 Indian Institute of Management Kashipur
MBA 2022-23, Term III
Management Accounting
Quiz 3
Maximum Marks: 10 Time: 30 Minutes.
Name..................... Roll No………..
Section ……………..
Amesbury Construction constructs residential houses. It uses a job-costing system with two
direct-cost categories (direct materials and direct labour) and one overhead-cost pool
(assembly support). Direct labour-hours is the allocation base for assembly support costs.

For the year 2021, Amesbury budgets assembly-support costs to be Rs. 8,30,000 and direct
labour-hours to be 16,600.

At the end of 2021, Amesbury is comparing the costs of several jobs that were started and
completed in 2021. Two of these jobs are Laguna and Mission. There details are given below:

Laguna Mission
Construction period Feb–June 2021 May–Oct 2021
Direct material costs Rs. 106,760 Rs. 127,550
Direct labour costs Rs. 36,950 Rs. 41,320
Direct labour-hours 1060 1,500

Direct materials and direct labour are paid for on a contract basis. The costs of each are
known when direct materials are used or when direct labour-hours are worked.

In 2021, actual assembly-support costs were Rs. 6,52,000, and the actual direct labour-hours
were 13,040.

1) Compute the (a) budgeted overhead allocation rate and (b) actual overhead allocation
rate. (1+1= 2)

2) What are the job costs of the Laguna and the Mission using normal costing? (2)
3) What are the job costs of the Laguna Model and the Mission Model using actual
costing? (2)
4) Amesbury Construction uses normal costing. What will be the amount of over or
under absorbed overheads at the end of year 2021?
(4)
Name..................... Roll No………..
Section ……………..
 Indian Institute of Management Kashipur
MBA 2022-23, Term III
Management Accounting
Quiz 3
Maximum Marks: 10 Time: 30 Minutes.
Name..................... Roll No………..
Section ……………..
Amesbury Construction constructs residential houses. It uses a job-costing system with two
direct-cost categories (direct materials and direct labour) and one overhead-cost pool
(assembly support). Direct labour-hours is the allocation base for assembly support costs.

For the year 2021, Amesbury budgets assembly-support costs to be Rs. 83,00,000 and direct
labour-hours to be 1,66,000.

At the end of 2021, Amesbury is comparing the costs of several jobs that were started and
completed in 2021. Two of these jobs are Laguna and Mission. There details are given below:

Laguna Mission
Construction period Feb–June 2021 May–Oct 2021
Direct material costs Rs. 107,760 Rs. 128,550
Direct labour costs Rs. 36,950 Rs. 41,320
Direct labour-hours 960 1,050

Direct materials and direct labour are paid for on a contract basis. The costs of each are
known when direct materials are used or when direct labour-hours are worked.

In 2021, actual assembly-support costs were Rs. 67,60,000, and the actual direct labour-hours
were 1,30,000.

1) Compute the (a) budgeted overhead allocation rate and (b) actual overhead allocation
rate. (1+1= 2)

2) What are the job costs of the Laguna and the Mission using normal costing? (2)
3) What are the job costs of the Laguna Model and the Mission Model using actual
costing? (2)
4) Amesbury Construction uses normal costing. What will be the amount of over or
under absorbed overheads at the end of year 2021?
(4)
Name..................... Roll No………..
Section ……………..