CMA SET FOR YOUR USE 3

SET 2:

1.       Explain the business decisions wherein marginal costing method is of use.

2.       Electro electronics ltd deals in electrical goods and submits the following information in respect of goods manufactured by it:

a.       SP:5.00

b.      VC per unit:2.00

c.       FOH:75000

d.      Units produced : 75000

e.      The company is expected to reduce the SP in order to meet the competition. You are required to calculate the level of output ot maintain present level of profit if the proposed reduction in prices is 10% and 20%.

3.       Write a note on the following:

a.       What is BEP

b.      What is MOS

c.       What is PVR

d.       What is cash BEP

4.       Calculate cash BEP units / sales from the following:

a.       SP per unit: 50.00

b.      VC per unit: 40.00

c.       Depreciation included in VC: 10.00

d.      FC: 200000

e.      Depreciation included in FC: 40000

5.       Explain the following:

a.       Wages rate variance

b.      Labour efficiency variance

c.       Labour mix variance

d.      Labour idle time variance

6.       Calculate sales variances viz: SPV, SVV,SMV, SQV from the  budgeted and actual sales for a period in respect of three products as given below:

Budgeted figures
Product	Quantity	Price	value
A	1000	5	5000
B	750	10	7500
C	500	15	7500
	2250		20000

ACTUALS
Product	Quantity	Price	value
A	1200	6	7200
B	700	9	6300
C	600	14	8400
	2500		21900

CMA SET FOR YOUR USE 2

SET : 3

1.       What are different types of material variances and how is material mix variance calculated.

2.       The standard cost of a chemical mixture is

a.       40% material A at 20.00 per kg

b.      60% material B at 30.00 per kg

A standard loss of 10% is expected in production. The actual are

c.       90 kg of material A at a cost of 18.00 per kg

d.      110 kg of material B at a cost of Rs. 34.00 per kg.

e.      The weight produced is 182 kg of good product.

f.        Calculate material cost variance; material price variance and material mix variance.

3.       Write a detailed note on total overhead cost variances and its sub categories of variances.

4.       From the following standard and actual data of product A you are required to calculate: overhead cost variance; overhead budget variance; overhead efficiency variance; overhead calendar variance; overhead capacity variance and overhead volume variance

Standard data	Actual production data
Standard hours for the period 2400	Hours worked 2500
Standard days 25	Actual days worked 27
Standard fixed overhead 1200.00	Actual fixed overheads 1300.00
Standard production 1500	Actual production  1600

5.       Write an essay on variance analysis

6.       With the help of following data calculate

a.       Labour cost variance

b.      Labour rate variance

c.       Labour efficiency variance

                                                               i.      Standard hours: 40 @3.00 per hour

                                                             ii.      Actual hours: 50 @4.00 per hour.

CMA SET OF QUESTIONS FOR YOUR USE . 1

1.       Write an essay on  the following aspects of budgets and budgetary control

a.       Essentials of budgeting

b.      Advantages of budgeting

c.       Limitations of budgeting

d.      Procedure for budgeting

2.       A department of company x attains sales of Rs. 600000/= at 80% production capacity. Draw up a flexible budget at 90%, 100%,110% of production capacity from the following:

a.       Administration cost

                                                                                       i.      Office salaries : 90000

                                                                                     ii.      General expenses: 2% of sales

                                                                                    iii.      Depreciation: 7500

                                                                                   iv.      Rates and taxes: 8750

b.      Selling cost:

                                                                                       i.      Salaries: 8% of sales

                                                                                     ii.      Travelling expenses: 2% of sales

                                                                                    iii.      Sales expenses: 1% of sales

                                                                                   iv.      General expenses: 1% of sales

c.       Distribution cost:

                                                                                       i.      Wages: 15000

                                                                                     ii.      Rent: 1% of sales

                                                                                    iii.      Other expenses: 4% of sales

3.       Write an essay on the following aspects of standard costing:

a.       Definition

b.      Advantages

c.       Limitations

d.      Preliminaries of setting standards

4.       80 kg of material A at a standard price of Rs 2 per kg and 40 kg of material B at a standard price of Rs 5 per kg were to be used to manufacture 100 kgs of a chemical. During a month , 70 kg of material A priced at 2.10 per kg and 50 kg of material B priced at 4.50 per kg were actually used and the output of the chemical achieved was 102 kg. find out the material variance and verify your answer.

5.       Write about the following aspects of break even analysis or CVP analysis

a.       Definition

b.      Graph and label it

c.       Write formulae based on the same for PV RATIO, CONTRIBUTION, DESIGNATED PROFIT, and BEP IN UNITS & VALUE.

d.      Assumptions underlying the BEP analysis.

6.       From the following : calculate PV RATIO, BEP SALES WITH PV RATIO, SALES REQUIRED TO EARN A PROFIT OF RS 450000, FIXED EXPENSES BEING 90000.

a.       Variable cost per unit:

                                                                                       i.      Material : 5.00

                                                                                     ii.      Labour: 2.00

                                                                                    iii.      Direct overhead: 100% on labour

                                                                                   iv.      SP: 12.00