MGT402 Final Term Past Paper 2017

Rana Abubakar Khan

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My today MGt402 paper , 16 Aug 2017

Q01. Apex corporation experienced following during April;

Particulars Units Beginning WIP inventory

(100% material & 40% labor) 7,500

Units started in this Period 64,000 Ending WIP inventory

(100% material, 60% labor) 5,000

Direct Material added at start of process & direct labor is added uniformly throughout process.

Required: Calculate equivalent unit for direct material & direct labor under weighted average method? (marks 03)

Q02. Ahmad & corporation has following information about his product (Soap). The selling price Rs. 110 per soup. Variable cost Rs.75 per soup, total fixed cost for firms is Rs. 70,000. Company has budgeted sale of Rs. 270,000 and breakeven sale Rs. 220,000.

Required: calculate margin of safety? (marks 03)

Q03. Following information available for preparing direct labor cost;

Budgeted labor hours = 1.5 hours per unit

Per hour rate = Rs. 40 per hour

Required: Calculate estimated amount of direct labor cost to produce 2400 units?? (marks 03)

Q04. Briefly explain concept of cash budget? (marks 03)

Q05. Calculate “per unit Cost”. Under the absorption and marginal costing? (marks 03)

Direct material = Rs.40 per unit

Direct Wages = Rs. 55 per unit

Variable overhead = Rs. 35 per unit

Fixed Overhead = Rs. 50,000

Production unit = 1000 units

Q06. XYZ corporation started 14,000 units for production during month of June. The company has 5,600 units (65% complete as to conversion cost) in beginning WIP, & 4000 Units (60% complete as to conversion cost) in Ending WIP.

Required: Calculate unit Transferred out and equivalent unit of production for consumption cost by using weighted average method? (Marks 05)

Q07. How you differentiate “theoretical capacity” and “Practical capacity”?? (marks 05)

Q08. Prepare income statement under absorption & marginal costing system? (marks 05)

Cost per unit under absorption costing 200(Fixed cost inclusive Rs.25 per unit) Cost per unit under marginal costing Rs. 175 Unit Produced Units sold

Q09. How can we make difference between Fixed budget and Flexible Budget? (marks 05)

Q10. RADF company sells several products, information about its operation term of revenue & cost as follows; (marks 05)

Selling Price per unit Rs. 20 Variable cost per unit Direct Material cost Rs. 04 Direct manufacturing labor Rs.160 Manufacturing overhead Rs. 0.40 Selling cost Rs. 02 Annual fixed cost Rs. 96,000

Required:

1. Calculate contribution Margin per unit
2. Calculate Break-even sale in terms of unit

MGT402_SPRING2016_22AUGUST_2016

• Calculate Capacity n Activity Ratio
• Equivalent units produced and unit per cost (Weighted average method)
• Gross Profit bu using Absorption costing and Marginal costing methods
• Budgetary Control system
• Breakeven sales in rupees and units
• Direct labor cost budget
• Physical Quantity Ratio