**14**answerable questions with

**0**answered.

Roll No……… | |

Total No. of Questions — 6] | [Total No. of Printed Pages — 2 |

Time Allowed : 3 Hours | Maximum Marks : 100 |

Answer all question |

Marks |

1. | (a) | Lee Electronic manufactures four types of electronic products, A,B,C and D. All these products have a good demand in the market. The following figures are given to you:
Fixed overhead at different levels of operation are :
At present, the available production capacity in the company is 4,98,000 machine hours. This capacity is not enough to meet the entire market demand and hence the production manager wants to increase the capacity. The company wants to retain the customers by meeting their demands through alternative ways. One alternative is to sub–contract a part of its production. The sub–contract offer received as under:
The company seeks your advice in terms of products and quantities to be produced and/or sub–contracted, so as to achieve the maximum possible profit. You are required to also compute the profit expected from your suggestion. | 12 | (0) | ||||||||||||||||||||||||||||||||||||

(b) | Explain briefly the concept of skimming pricing policy. | 2 | (0) | |||||||||||||||||||||||||||||||||||||

2. | (a) | A bank offers three products, viz., deposits, Loans and Credit Cards. The bank has selected 4 activities for a detailed budgeting exercise, following activity based costing methods. The bank wants to know the product wise total cost per unit for the selected activities, so that prices may be fixed accordingly. The following information is made available to formulate the budget:
The activity drivers and their budgeted quantifies are given below:
The bank budgets a volume of 58,600 deposit accounts, 13,000 loan accounts, and 14,000 Credit Card Accounts. You are required to:
| 12 | (0) | ||||||||||||||||||||||||||||||||||||

(b) | How do you know whether an alternative solution exists for a transportation problem? | 4 | (0) | |||||||||||||||||||||||||||||||||||||

3. | (a) | Hind Metals Manufactures an alloy product ‘Incop’ by using iron and Copper. The metals pass through two plants, X and Y. The company gives you the following details for the manufacture of one unit of Incop:
| 6 | (0) | ||||||||||||||||||||||||||||||||||||

(b) | What are the critical success factors for the implementation of a "Total Quality Management" programme? | 5 | (0) | |||||||||||||||||||||||||||||||||||||

(c) | How can value analysis achieve cost reduction? | 5 | (0) | |||||||||||||||||||||||||||||||||||||

4. | (a) | Optically Ltd. makes two kinds of products, P (lenses) and Q (swimming goggles) in divisions P and Q respectively. P is an input for Q and two units of P are needed to make one unit of Q. The following data is given to you for a period :
If Q buys P from outside, it has the following costs:
You are required to:
| 12 | (0) | ||||||||||||||||||||||||||||||||||||

(b) | In an assignment problem to assign jobs to men to minimize the time taken, suppose that one man does not know how to do a particular job, how will you eliminate this allocation from the solution? | 4 | (0) | |||||||||||||||||||||||||||||||||||||

5. | (a) | The following information relates to labour of x Ltd.
In a 40 hours week, the gang produced 270 standard hours. The actual number of semi–skilled workers is two times the actual number of unskilled workers. The rate variance of semi–skilled workers is Rs.160 (F). Find the following:
| 10 | (0) | ||||||||||||||||||||||||||||||||||||

(b) | The following is a linear programming problem. You are required to set up the initial simplex tableau. (Please do not attempt further iterations or solution):
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6. | (a) | The following network gives the duration in days for each activity :
| 6 | (0) | ||||||||||||||||||||||||||||||||||||

(b) | In the past, a machine has produced pipes of diameter 50 mm. To determine whether the machine is in proper working order, a sample of 10 pipes is chosen, for which mean diameter is 53 mm and the standard deviation is 3 mm. Test the hypothesis that the machine is in proper working order, given that the critical value of the test statistic from the table is 2.26. | 4 | (0) | |||||||||||||||||||||||||||||||||||||

(c) | The Gifts Company makes mementos for offering chief guests and other dignitaries at functions. A customer wants 4 identical pieces of hand–crafted gifts for 4 dignitaries invited to its function. For this product, the Gifts Company estimates the following costs for the 1st unit of the product
90 % learning curve ratio is applicable and one labourer works for one customer’s order.
| 6 | (0) |