DISTANCE EDUCATION
B.B.A. (CS)/B.B.A. (Lateral) DEGREE EXAMINATION,
DECEMBER 2017.
COST ACCOUNTING
(2005 onwards)
Time Three hours Maximum 100 marks
SECTION A — x 8 40 marks)
Answer any FIVE of the following.
1. Explain the functions of cost accounting.
2. Calculate the labour cost for the month of July 1999
relating to a workman from the following
Basic pay Rs. 200 per mensem
D.A Rs. 15 per mensem
Employer contribution to state Insurance of Basic and
D.A.
Fringe benefits Rs. 100 per mensem
Employer contribution to provident fund of Basic and
D.A.
Employee contribution to state Insurance and provident
fund is equal to that of employer.
3. Enumerate essentials of a good wage system.
4. Work out the machine hour rate for the following
machine whose scrap value is nil
Cost of machine Rs. 3,60,000
Working life 20 yrs
Sub. Code
34
DE-2457
2
wk4
Freight and installation Rs. 40,000
Working hours 8000 per year
Repair charges 50% of depreciation.
Power 10 units per hour 10 paise per unit
Lubricating oil Rs. 2 per day of 8 hrs.
Consumable stores Rs. 10 per day of 8 hrs
Wages of operator Rs. 4 per day.
5. Prepare a reconciliation statement from the following
details
Rs.
Net loss as per cost A/c 3,44,800
Net loss as per financial A/c 4,32,890
Works overhead under recovered in costing 6,240
Depreciation over recovered in costing 2,600
Interest on Investments 17,500
Administrative overhead over recovered in costing 2,600
Goodwill written off 92,000
Stores adjustment in financial books 950
Depreciation of stock charged in financial books 13,500
6. A manufacturing concern which has adopted standard
costing furnishes the following information
Standard Materials for 70 kg of finished product
100 kg
Prices of materials Rs. 1 per kg
Actual Output 2,10,000 kg
Material used 2,80,000 kg
Cost of materials Rs. 2,52,000
DE-2457
3
wk4
Calculate
Material usage variance
Material price variance
Material cost variance
7. A batch of 600 units was introduced in a process at Rs. 20
per unit. 500 units were completed and transferred to the
finished goods stores. The normal process loss was 20% of
the input, and the scrap is normally sold to a contractor
at Rs. 3 each. The labour and overhead expenditure,
incurred in the process amounted to Rs.600. You are
required to show the process and abnormal gain accounts.
8. Using the following data, calculate the Halsey and the
Rowan premium bonus system bringing out their
comparative merits and demerits.
Time allowed 48 hrs
Time taken 40 hrs
Rate per hour Rs. 1
SECTION B — × 15 60 marks)
Answer any FOUR questions.
9. State and explain the classification of cost.
10. In a factory 2 types of radios are manufactured viz.
Orient and Sujan models from the following particulars
prepare a statement showing cost and profit per radio
sold. There is no opening closing stock.
Orient Sujon
Materials 27,300 1,08,680
Labour 15,600 62,920
Works overhead is charged at 80% on labour and office
overhead is taken at 15% on works cost. The selling price
of both radios is Rs. 1,000. 78 orient radios and 286 sujon
radios were sold.
DE-2457
4
wk4
11. The standard production in a factory is 10 units per hour
for a day of 8 hrs. The wage is Rs. 6 per day. Bonus rated
on efficiency is paid according to a scale as follows
Level of efficiency Bonus
Up to 60% of standard nil
Above 60% and upto 75%
Above 75% and upto 90% 10%
Above 90% and upto 100% 15%
For an increase of every of efficiency beyond 100% the
bonus also rises by 1%. Output of 3 workers on a day was
as follows.
A 40 units; B 75 units; C 100 units.
Calculate the earnings of the workers.
12. Explain the various methods of absorbing of overheads.
13. X enterprises production budget for the year 1988 was
1,00,000 units. Predetermined overhead rates on units
basis were in practice. The actual results as shown in
financial accounts were
Profit and Loss a/c
Rs. Rs.
To Materials 1,50,000 By Sales (75000 units) 3,00,000
To Wages 50,000
To Works Expenditure 40,000
To Office expenses 20,000
To Selling expenses 15,000
To Net profit C/d 25,000
3,00,000 3,00,000
DE-2457
5
wk4
Of the overheads, fixed portion was Office 100% and
selling 1/3
Prepare a statement showing cost and profit.
Prepare reconciliation statement also.
14. From the following data calculate
Sales price variance
Sales volume variance
Sales mix variance.
Standard Actual
Units Price per unit Units Price per unit
A 1,500 Rs. 30 2000 Rs. 29
B 1,000 Rs. 50 700 Rs. 50
15. Compute machine hour rate from the following
information given below
Cost of machine X Rs. 13,500
Life of the machine 10 years
Estimated scrap value (after 10 years) Rs. 1,980
Working hours Rs. 1,800
Insurance (p.a.) Rs. 45
Cotton wastes (p.a.) Rs. 75
Rent for dept (p.a.) Rs. 975
Foreman's salary (p.a.) Rs. 7,500
Lighting for dept (p.a.) Rs. 360
DE-2457
6
wk4
Repairs for entire life Rs. 1,440
Power 10 units 7.5 paise per unit
Machine X occupies 1/5 of the area and foreman devotes
1/4th of his time to the machine. The machine has two
light points out of the total 12 for lighting in the
department.
——————