(a) ANKIT LTD. operates a throughput accounting system. The details of product B-1 per unit are as under: Selling price Material Cost { 30 12 Conversion Cost { 15 Time on bottleneck resources 6 minutes Calculate the Return per hour for Product B-1. (b) The following figures have been given for Profit and Sales from the accounts of ZEESLIN LTD. Sales ) 2,00,000 3,00,000 Year Profit (?) 2011 20,000 40,000 2012 Calculate the sales required to eam a Profit of ? 50,000. (c) In a factory of ARITAN LTD. operating Standard Costing System, 2,000 kgs of a material@ { 12 per kg were used for a product, resulting in price variance of ? 6,000 (FAV) and usage variance of 3,000 (ADV). What is the standard material cost of actual production of a product ? (d) The cost per unit of a product manufactured in a factory of ZENION LTD. amounts to ? 160 (75% variable) when production is 10,000 units. If the production increases by 25% what would be the cost of production per unit? (e) What are the limitations of Inter-firm comparison? (f) ARIHANT LTD. is a 100% EOU as per the policy announced under the Foreign Trade Policy but is not registered under the provisions of Foreign Trade Policy. Will this company be exempted from mandatory Cost Audit?
(a) ANKIT LTD. operates a throughput accounting system. The details of product B-1 per unit are as under: Selling price Material Cost { 30 12 Conversion Cost { 15 Time on bottleneck resources 6 minutes Calculate the Return per hour for Product B-1. (b) The following figures have been given for Profit and Sales from the accounts of ZEESLIN LTD. Sales ) 2,00,000 3,00,000 Year Profit (?) 2011 20,000 40,000 2012 Calculate the sales required to eam a Profit of ? 50,000. (c) In a factory of ARITAN LTD. operating Standard Costing System, 2,000 kgs of a material@ { 12 per kg were used for a product, resulting in price variance of ? 6,000 (FAV) and usage variance of 3,000 (ADV). What is the standard material cost of actual production of a product ? (d) The cost per unit of a product manufactured in a factory of ZENION LTD. amounts to ? 160 (75% variable) when production is 10,000 units. If the production increases by 25% what would be the cost of production per unit? (e) What are the limitations of Inter-firm comparison? (f) ARIHANT LTD. is a 100% EOU as per the policy announced under the Foreign Trade Policy but is not registered under the provisions of Foreign Trade Policy. Will this company be exempted from mandatory Cost Audit?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Solve part e and f
Transcribed Image Text:(a) ANKIT LTD. operates a throughput accounting system. The details of product B-1 per unit are as
under:
Selling price
Material Cost
{ 30
{ 12
{15
Conversion Cost
Time on bottleneck resources 6 minutes
Calculate the Return per hour for Product B-1.
(b) The following figures have been given for Profit and Sales from the accounts of ZEESLIN LTD.
Sales )
Year
Profit )
2011
2,00,000
20,000
40,000
2012
3,00,000
Calculate the sales required to eam a Profit of 50,000.
(c) In a factory of ARITAN LTD. operating Standard Costing System, 2,000 kgs of a material@
{ 12 per kg were used for a product, resulting in price variance of 7 6,000 (FAV) and
usage variance of 3,000 (ADV). What is the standard material cost of actual production
of a product ?
(d) The cost per unit of a product manufactured in a factory of ZENION LTD. amounts to ?
160 (75% variable) when production is 10,000 units. If the production increases by 25% what
would be the cost of production per unit?
(e) What are the limitations of Inter-firm comparison?
(f) ARIHANT LTD. is a 100% EOU as per the policy announced under the Foreign Trade
Policy but is not registered under the provisions of Foreign Trade Policy. Will this
company be exempted from mandatory Cost Audit?
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