FASTRACK COST TEST 2

Time Allowed: 1:30 Maximum Marks: 50

STRICT INSTRUCTIONS

UPLOADING THE ANSWER SHEET:

1. Upload in PDF format only.

2. Take images of answer sheet in VERTICAL FORM (not horizontal).

3. Make PDF of all images in sequence using the App CAM SCANNER or any other App. Write page number on top of every page of your
answer sheet.

4. Upload it before time.

s
5. Be HIGHLY careful while uploading the answer sheet..

e
Q.No Questions Marks

ri
MCQ. Method of apportioning joint costs on the basis of output of each joint product at the point of split off is: 1

Se
1 a. Sales value method
b. Physical unit method
c. Average cost method
d. Marginal cost and contribution method

st
MCQ. Under standard cost system the cost of the product determined at the beginning of production is its: 1
Te
2 a. Direct cost
b. Pre-determined cost
c. Historical cost
d. Actual cost
s

MCQ. Job costing is similar to that under Batch costing except with the difference that a: 1
ie

3 a. Job becomes a cost unit.

b. Batch becomes the cost unit instead of a job
ud

c. Process becomes a cost unit

d. None of the above.
St

MCQ. 100 units are processed at a total cost of ₹ 160, normal loss is 10%, & scrap units are sold @ ₹ 0.25 each. If the 1
4 output is 80 units, then the value of abnormal loss is:
a. ₹ 2.50
b. ₹16
d

c. ₹17.50
re

d. ₹17.75

MCQ. In the Net realizable value method, for apportioning joint costs over the joint products, the basis of 1
te

5 apportionment would be:

a. Selling price per unit of each of the joint products
r

b. Selling price per unit of each of the joint products

c. Sales value of each joint product less further processing costs of individual products
ha

d. Both (b) and (c)

MCQ. In Toll Road costing, the repetitive costs includes: 1

C

6 a. Maintenance cost
b. Annual operating costs
c. None of the above
d. Both (a) and (b)

MCQ. The standard most suitable from cost control point of view is: 1
7 a. Normal standard
b. Theoretical standard
c. Expected standard
d. Basic standard

MCQ. When sales and production (in units) are same then profit under: 1
8 a. Marginal costing is higher than that of absorption costing.
b. Marginal costing is lower than that of absorption costing.
c. Marginal costing is equal to that of absorption costing.
d. None of the above.

www.charteredstudies.in Page 1
Q.No Questions Marks
MCQ. When sales exceed production (in units) then profit under: 1
9 a. Marginal costing is higher than that of absorption costing.
b. Marginal costing is lower than that of absorption costing.
c. Marginal costing is equal than that of absorption costing.
d. None of above.

MCQ. Budget manual is a document: 1

10 a. Which contains different type of budgets to be formulated only.
b. Which contains the details about standard cost of the products to be made
c. Setting out the budget organization and procedures for preparing a budget including fixation of responsibilities, formats
and records required for the purpose of preparing a budget and for exercising budgetary control system.
d. None of the above

Q. 1 MT Ltd. pays the followings to skilled workers engaged in production works. The following are the employee benefits paid 5
to the employees:

(a) Basic salary per day ₹1,000

(b) Dearness allowance (DA) 20% of basic salary
(c) House rent allowance 16% of basic salary

s
(d) Transport allowance ₹50 per day of actual work

e
Twice the hourly rate (considers basic and DA), only if works more
than 9 hours a day otherwise no overtime allowance. If works for

ri
(e) Overtime
more than 9 hours a day then overtime is considered after 8th
hours.

Se
Double of per day basic rate provided works at least 4 hours. The
(f) Work of holiday and Sunday holiday and Sunday basic is eligible for all allowances and
statutory deductions.

st
(h) Earned leave & Casual leave These are paid leave.
Employer’s contribution to Provident
(h) 12% of basic and DA
Te
fund
Employer’s contribution to Pension
(i) 7% of basic and DA
fund
The company normally works 8-hour a day and 26-day in a month. The company provides 30 minutes lunch break in
s

between. During the month of August 2020, Mr. Z works for 23 days including 15th August and a Sunday and applied for 3
ie

days of casual leave. On 15th August and Sunday he worked

ud

for 5 and 6 hours respectively without lunch break.

On 5th and 13th August he worked for 10 and 9 hours respectively. During the month Mr. Z worked for 100
hours on Job no.HT200. You are required to CALCULATE:
St

(i) Earnings per day

(ii) Effective wages rate per hour of Mr. Z.
Wages to be charged to Job no.HT200
d

Q. 2 The following are the details in respect of Process A and Process B of a processing factory: 5
re

ProcessA(₹) Process B (₹ )
Materials 40,000 --
te

Labour 40,000 56,000

Overheads 16,000 40,000
r

The output of Process A is transferred to Process B at a price calculated to give a profit of 20% on the transfer price and
the output of Process B is charged to finished stock at a profit of 25% on the transfer price. The finished stock department
ha

realized ₹ 4,00,000 for the finished goods received from Process B. PREPARE process accounts and CALCULATE total
profit, assuming that there was no opening or closing work-in-progress
C

Q. 3 5
Inan Oil Mill, four productsemergefrom arefining process. Thetotal cost of input during the quarter ending March 2019 is
Rs.22,20,000. The output, sales and additional processing costs are as under:

Output in Additional processing

Products Sales value (Rs.)
Litres cost after split off (Rs.)
A 8,000 6,45,000 25,87,500
B 4,000 1,35,000 2,25,000
C 2,000 - 90,000
D 4,000 22,500 6,75,000
In case these products were disposed-off at the split off point that is before further processing, the selling price per litre
would have been:
A (Rs.) B (Rs.) C (Rs.) D (Rs.)
225.00 90.00 45.00 112.50
PREPARE a statement of profitability based on:
(i) If the products are sold after further processing is carried out in themill.
If they are sold at the split off point.

www.charteredstudies.in Page 2
Q.No Questions Marks
Q. 4 YSPP Transport Company is running local city buses. It has a fleet of 20 Buses. Each bus can carry average 40 passengers 5
per day and cover distance of 112.50 kms per day. Due to Covid-19 pandemic, the company is running 90% buses on
average.
Below are the operational expenses worked out for the month of November, 2021:
Original cost per bus ₹ 48,00,000
Insurance for 20 buses ₹ 63,36,000 per annum
Diesel & Oil ₹ 10 per km.
Salary of drivers per bus ₹ 25,000
Salary of cleaners per bus ₹ 15,000
Tyres and tubes ₹ 12,58,040
Lubricants ₹ 10,70,000
Repairs ₹ 24,70,000
Road tax per bus ₹ 1,50,000
Administrative overhead ₹ 50,88,000 per annum
Depreciation on buses is computed @ 20% using Straight Line Method. Passenger tax is 15% on total taking. Based on
abovementioned information, you are required to COMPUTE the fare to be charged from each passenger per kilometer
assuming 25% margin on total taking

e s
Q. 5 A manufacturing department of a company has employed 120 workers. The standard output of product ''NPX" is 20 units 5
per hour and the standard wage rate is ₹ 25 per labour hour.

ri
In a 48 hours week, the department produced 1,000 units of 'NPX' despite 5% of the time paid being lost due to an
abnormal reason. The hourly wages actually paid were ₹ 25.70 per hour.

Se
Calculate:
(i) Labour Cost Variance
(ii) Labour Rate Variance
(iii) Labour Efficiency Variance

st
Labour Idle time Variance
Te
Q. 6 Fixed Cost Rs. 1,20,000 5
Variablecosts Rs.3perunit
Selling price Rs.7perunit
Output Rs. 50,000 unit42,525 units
s

CALCULATE the profit for each of the following situation with the above data:
ie

(i) with the data above

(ii) with a 10% increase in output & sales.
ud

(iii) with a 10% increase in fixed costs.

(iv) with a 10% increase in variable costs.
(v) with a 10% increase in selling price.
St

(vi) taking all the above situations.

d

Q. 7 Following data is available for ABC Ltd.: 5

re

8 hours per day of 5 days per

Standard working hours
week
Maximum Capacity 60 employees
te

Actual working 50 employees

Actual hours expected to be worked per four week 8,000 hours
r

Standard hours expected to be earned per four week 9,600·hours

ha

Actual hours worked in the four week period 7,500 hours

Standard hours earned in the four week period 8,800 hours
C

The related period is of four weeks. Calculate the following Ratios:

(i) Efficiency Ratio
(ii) Activity Ratio
(iii) Standard Capacity Usage Ratio
(iv) Actual Capacity Usage Ratio
Actual Usage of Budgeted Capacity Ratio

www.charteredstudies.in Page 3
Q.No Questions Marks
Q. 8 A firm has a total capacity of producing 1,00,000 units of an item. The budgeted expenses at this level of activity are as 5
under:
Per unit (₹)
Direct Materials 650
Direct Wages 325
Direct Expenses 125
Variable overheads 50
Fixed Production Overheads 25
Selling and Distribution Overheads (20% fixed) 25
Administrative Expenses (100% fixed) 60
Total 1,260
The selling price is ₹ 1,750 per unit and is anticipated to remain constant.
You are required to PREPARE a flexible budget, on the basis of marginal costing, for 60,000 and 75,000 units of output
level showing the profit and P/V Ratio.

e s
ri
Se
st
Te
s
ie
ud
St
d
re
r te
ha
C

www.charteredstudies.in Page 4