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