|Total No. of Questions — 6]||[Total No. of Printed Pages — 2|
|Time Allowed : 3 Hours||Maximum Marks : 100|
|Answer all questions.|
|Working notes should form part of the answer.|
|1.||(a)|| E Ltd. is engaged in the manufacturing of three products in its factory. The following budget estimates are prepared for 2009–10 : |
After the finalisation of the above manufacturing schedule, it is observed that presently only 80% capacity being utilised by these three products. The production activities are made at the same platform and it may be interchangeable among products according to requirement. In order to improve the profitability of the company the following three proposals are put for consideration:
|(b)|| A Company is engaged in manufacturing two products A and B. Product A uses one unit of component X and two units of component Y. Product B uses two units of component X and one unit of component Y and two units of component Z. Component Z which is assembled in the factory uses one unit of component Y. |
Components X and Y are purchased from the market. The company has prepared the following forecast of sales and inventory for the next year:
The production of both the products and the assembling of the component Z will be spread out uniformly throughout the year. The company at present orders its inventory of X and Y in quantities equivalent to 3 months production. The company has compiled the following data related to the two components:
|(c)|| Identify the characteristics movement such as regular, irregular, cyclical, seasonal, long-term trend, short-term etc. of time series in the following situations: |
|2.||(a)|| AML Ltd. is engaged in production of three types of ice-cream products: Coco, Strawberry and Vanilla. The company presently sells 50,000 units of Coco @ Rs. 25 per unit, Strawberry 20,000 @ Rs. 20 per unit and Vanilla 60,000 units @ Rs. 15 per unit. The demand is sensitive to selling price and it has been observed that every reduction of Re. 1 per unit in selling price, increases the demand for each product by 10% to the previous level. The company has the production capacity of 60,500 units of Coco, 24,200 units of Strawberry and 72,600 units of Vanilla. The company marks up 25% on cost of the product. |
The Company management decides to apply ABC analysis. For this purpose it identifies four activities and the rates as follows:
Customer support and assistance Rs. 1.10 p.u. sold.
The other relevant information for the products are as follows:
Under the traditional costing system, store support costs are charged @ 30% of prime cost. In ABC these costs are coming under customer support and assistance.
|(b)||What are the essential requisites for the installation of Uniform costing system?||4||(0)|
|3.||(a)|| What are the essential requisites for the installation of Uniform costing system? |
X Ltd. produces and sells a single product. Standard cost card per unit of the product is as follows
The material price variance is extracted at the time of receipt of materials. Material purchase were a 20,000 kg. @ Rs. 5.25 per kg; B 11,500 kg @ Rs. 5.70 per kg.
|(b)||What is Backflushing in JIT? State the problems that must be addressed for the effective functioning of the system.||4||(0)|
|4.||(a)|| An electronics firm which has developed a new type of fire-alarm system has been asked to quote for a prospective contract. The customer requires separate price quotations for each of the following possible orders: |
Determine a price per unit for each of the three orders, assuming the firm uses a mark up of 25% on total costs and allows for an 80% learning curve. Extract from 80% learning curve table:
X represents the cumulative total volume produced to date expressed as a multiple of the initial order.
Y is the learning curve factor, for a given X value, expressed as a percentage of the cost of the initial order.
|(b)||What are the applications of incremental/differential costs?||5||(0)|
|5.||(a)|| ABC Cooperative Bank receives and disburses different amount of cash in each month. The bank has an opening cash Balance of Rs. 15 crores in the first month. Pattern of receipts and disbursements from past data is as follows: |
Simulate the cash position over a period of 12 months.
|(b)|| A small project is composed of seven activities, whose time estimates are listed below. Activities are identifies by their beginning (i) and ending (j) note numbers: |
|(c)||Brief the principles associated with synchronous manufacturing.||5||(0)|
|6.||(a)|| X Ltd. supplies spare parts to an air craft company Y Ltd. The production capacity of X Ltd. facilitates production of any one spare part for a particular period of time. The following are the cost and other information for the production of the two different spare parts A and B: |
Total hours available : Machine A 4,000 hours
Machine B 4,500 hours
Alloy available is 13,000 kgs. @ Rs. 12.50 per kg.
Variable overheads per machine hours:
Machine A : Rs. 80
Machine B : Rs. 100
You are required to identify the spare part which will optimize contribution at the offered price.
If Y Ltd. reduces target price by 10% and offers Rs. 60 per hour of unutilized machine hour, what will be the total contribution from the spare part identified above?
|(b)||What do you mean by Degeneracy in transportation problem? How this can be solved?||4||(0)|
|(c)||What is Price Discrimination? Under what circumstances it is possible?||4||(0)|