A flexible budget for a level of activity of 60,000 machine hours would show total manufacturing overhead costs of ……………
A single product company estimated its unit to be produced for the next year quarter wise as under:
Question 112. A department has budgeted monthly manufacturing overhead cost of ? 90,000 plus ? 3 per direct labour hour. If a flexible budget report reflects ? 1,74,000 for budgeted manufacturing cost for the month, the actual level of activity achieved during the month was: (A) 88,000 direct labour hours (B) 28,000 direct labour hours (C) 58,000 direct labour hours (D) Cannot be determined Answer: (B) 28,000 direct labour hours
Question 113. Z Co. has budgeted manufacturing costs for 25,000 units are: Fixed manufacturing costs ? 25,000 per month, Variable manufacturing costs ? per unit. Z Co. produced 20,000 units during March. How much is the flexible budget for total manufacturing costs for March? (A) 2,60,000 (B) 3,25,000 (C) 2,40,000 (D) 2,65,000 Answer: (D) 2,65,000
Question 114. If indirect repair cost at 6,000 labour hours is 42,000 and ? 63,000 at 9,000 labour hours, then it indirect repair cost is in nature. (A) Variable (B) Fixed (C) Semi-fixed (D) None of the above Answer: (A) Variable
Which cost is semi-variable in nature? (A) Repair, shop labour inspection (B) Repair, Power, Consumables inspection (C) Shop labour Consumables (D) Repair, Power inspection Answer: (D) Repair, Power inspection
Question 116. Recent budget prepared by G Ltd. show https://rapidloan.net/payday-loans-or/ that inspection cost is ? 5,000 at a capacity level of 2,500 units out of which 25% is semi-variable. What will be inspection cost at 1,750 level of activity? (A) ? 6,125 (B) ? 4,625 (C) ? 3,875 (D) ? 3,625 Answer: (B) ? 4,625
Direct labour averages ? 2
Question 117. The budget manager of J Ltd. is preparing a flexible budget. Material costs ? 7 per unit. 5 per hour and requires 1.60 hours to produce one unit. Salesmen are paid commission of ? 1 per unit sold.
What will be total cost at 1,40,000 units? (A) ? 26,30,000 (B) ? 25,10,000 (C) ? 27,70,000 (D) ? 28,55,000 Use the following information to answer next 2 questions. A factory is working at 50% of its capacity and produces 10,000 units. At 60% capacity, the raw materials cost increased by 2%. At 80% capacity, raw material cost increased by 5% and selling price falls by 5%. At 50% capacity, the product costs ? 180 per unit and sold at ? 200 per unit. The cost of ? 180 is made up as follows:
Question 118. Estimate the profit of the factory when it works at 60% of its working capacity. (A) ? 3,72,000 (B) ? 2,60,000 (C) ? 2,72,000 (D) ? 3,60,000 Answer: (B) ? 2,60,000
Question 119. Estimate the profit of the factory when it works at 80% of its working capacity. (A) ? 3,72,000 (B) ? 2,60,000 (C) ? 2,72,000 (D) ? 3,60,000 Answer: (A) ? 3,72,000
Question 120. Factory overheads of Good-Luck Ltd. at 55% capacity are ? 3,10,000 and at 75% capacity ? 3,50,000 for the current year. The following increases in cost are expected in next year:
What will be the factory overheads if factory works at 85% capacity next year? (A) 3,98,500 (B) 2,98,500 (C) 5,98,200 (D) 3,48,250 Answer: (A) 3,98,500
Each unit of finished output requires 2 kg of raw material. The opening stock of raw materials in the beginning of the year is 10,000 kg and the closing stock at the end of the year is required to be maintained at 5,000 kg. Raw material to be purchased in kg = ? (A) 3,20,000 (B) 3,25,000 (C) 3,15,000 (D) 3,30,000 Answer: (C) 3,15,000