**22**answerable questions with

**0**answered.

Roll No……… | |

Total No. of Questions — 7] | [Total No. of Printed Pages — 8 |

Time Allowed : 3 Hours | Maximum Marks : 100 |

Q.No. 1 is compulsory. |

Answer any five questions from the remaining six questions. |

Marks |

1. | (a) | A company actually sold 8000 units of A and 10,000 units of B at Rs. 12 and Rs. 16 per unit respectively against a budgeted sale of 6000 units of A at Rs. 14 per unit and 9000 units of B at Rs. 13 per unit. The standard costs of A and B are Rs. 8 and Rs. 10 per unit respectively and the corresponding actual costs are Rs. 5.5 and Rs.14.5 per unit. Compute the product wise sales margin mix and sales margin price variances, indicating clearly, whether the variances are favorable or adverse. | 5 | (0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||

(b) | company makes a single product which sells at Rs. 800 per unit and whose variable cost of production is Rs. 500 per unit. Production and sales are 1000 units per months. Production is running to full capacity and there is market enough to absorb an additional 20% of output each month. The company has two options:
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(c) | Pick out from each of the following items, costs that can be classified under ‘committed fixed costs’ or ‘discretionary fixed costs’.
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(d) | The following matrix is a minimization problem for transportation cost. The unit transportation costs are given at the right hand corners of the cells and the Δij values are encircled.
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2. | (a) | During the last 20 years, KL Ltd’s manufacturing operation has become increasingly automated with computer–controlled robots replacing operators. KL currently manufacturers over 100 products of varying levels of design complexity. A single plant wise overhead absorption rate, based on direct labor hours is absorb overhead costs. In the quarter ended March, KL’s manufacturing overhead costs were:
During the quarter, the company reviewed the Cost Accounting System and concluded that absorbing overhead costs to individual products on a labour hour absorption basis was meaningless and that overhead costs should be attributed to products using an Activity Based Costing (ABC) system, The following are identified as the most significant activities.
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(b) | State any three differences between PERT and CPM | 3 | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||

(c) | What are the disadvantages of Cost Plus Pricing? | 5 | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||

3. | (a) | A manager was asker to assign tasks to operators (one task per operator only) so as to minimize the time taken. He was given the matrix showing the hours taken by the operators for the tasks. First, he preformed the row minimum operation. Secondly, he did the column minimum operation. Then, he realized that there were 4 tasks and 5 operators. At the third step he introduced the dummy row and continued with his fourth step of drawing lines to cover zeros. He drew 2 vertical lines (under operator III and operator IV) and two horizontal lines (aside task T
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(b) | Classify the following measures under appropriate categories in a balanced score card for a banking company which excels in it s home loan products:
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(c) | A company can make any one of the 3 products X,Y or Z in a year. It can exercise its option only at the beginning of each year. Relevant information about the products for the next year is given below
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4. | Answer any four out of the following five subdivisions: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||

(a) | 6000 pen drives of 2 GB to be sold in a perfectly competitive market to earn Rs.1,06,000 profit, whereas in a monopoly market only 1200 units are required to be sold to earn the same profit. The fixed costs for the period are Rs. 74,000 . the contribution per unit in the monopoly market is as high as three fourths its variable cost. Determine the targets selling price per unit under each market condition. | 4 | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||

(b) | In a company, factory, overheads are applied on the basis of direct labour hours. The following information is given:
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(c) | Classify the following items under the three measures used in the theory of constraints:
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(d) | Will the initial solution for a minimization problem obtained by Vogel’s Approximation Method and the Least Cost Method be the same? Why? | 4 | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||

(e) | Name any four stage in the process of bench marking. | 4 | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||

5. | (a) | A Company has two manufacturing divisions X and Y, X has a capacity of 96000 hours per annum. It manufactures two products. ‘Gear’ and ‘Engines’ as [per the following details.
The fixed overheads for X and Y are Rs. 24 lakhs and Rs. lakhs respectively. With a view to minimizing dependence on the imported component, the company has explored a possibility of Division Y using product ‘Gears’ instead of the imported component. This is possible provided Division Y spends 2 machine hours entailing an additional expenditure of Rs. 64 per component on modification of product ‘Gears’ to fit into ‘wheels’. Production and sales of Wheels in Division Y is limited to 5000 units per annum.
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(b) | A company manufactures two products X and Y involving three departments, Machining, Fabrication and Assembly which have limitations on the hours as 720 hours, 1800 hours and 900 hours respectively. X and Y require 1 and 2 hour of machining time per unit and 3 hours and 1 hours of assembly time per unit respectively. X and Y fetch Rs. 80 and Rs. 100 as respective unit contributions.
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6. | (a) | Explain the pre–requisites for successful operation of material requirement planning. | 5 | (0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||

(b) | Point out the errors in the network given below, going by the usual conventions while drawing a network to use CPM. | 6 | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||

(c) | Maruthi Agencies has received an order from a valuable client for supplying 3,00,000 pieces of a component at Rs. 550 per unit at a uniform rate of 25000 units a month. Variable manufacturing costs amount to Rs.404,70 per unit, of which direct materials is Rs. 355 per unit. Fixed production overheads amount to Rs. 30 lacs per annun, ecluding depreciation. There is a penalty/reward clause of Rs. 30 per unit for supplying less/more than 25000 units per month. to adhere to the schedule of supply, the company procured a machine worth Rs. 14.20 lacs which will wear out by the end of the year and will fetch Rs. 3,55 lakh sat the year end. After this supply of machine, the supplier offers another advanced machine which will cost Rs. 10.65 lakhs , will wear out by the year end and not have any resale value. If the advanced machine is purchased immediately, the purchaser will exchange the earlier machine supplied at the price of the new machine. Fixed costs of maintaining the advanced machine will increase by Rs. 14,200/- per month for the whole year. While the old machine had the capacity to complete the production in 1 year, the new machine can complete the entire job in 10 months. The new machine will have material wastage of 0.5% . assume uniform production throughout the year for both the machines. | 5 | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||

7. | (a) | A car rental agency has collected the following data on the demand for five–seater vehicles over the past 50 days.
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(b) | Entertain U Ltd. hires an air–conditioned theatre to stage plays on weekend evenings. One play is staged pea evening. The following are the seating arrangements: VIP rows–the first 3 rows of 30 seas per row, priced at Rs. 320 per seat. Middle level–the next 18 rows of 20 seats per row priced at Rs. 250 per sea. Last level – 6 rows of 30 seats per room priced at Rs. 120 per seat. For each evening a drama troup has to be hired at Rs. 71,000, rent has to be paid for the theatre at Rs. 14,000 per evening and air conditioning and other state arrangements charges work out to Rs. 7,400 per evening. Every time a play is staged, the drama troup’s friends and guests occupy the first row of the VIP class, free or charged. by virtue of passes granted to these guest. the troupe ensures that 50% of the remaining seats of the VIP class and 50% of the seats of the other two classes are sold to outsiders in advance and the money is passed on to Entertain U. The troupe also finds for every evening, a sponsor who pouts up his advertisements banner near the stage and pays Entertain U a sum of Rs. 9,000 per evening. Entertain U supplies snacks during though interval free of charge to all the guests in the hall, including the VIP free guests. The snacks cost Entertain U Rs. 20 per person. Entertain U sells the remaining tickets and observes that for every one seat demanded from the last level, there are 3 seats demanded from the middle level and 1 seat demanded from the VIP level. You may assume that in case any level is filled, the visitor busy the next higher or lower level, subject to availability.
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