Dibrugarh University - Cost Accounting 1995

Answer any five questions:-

1. Analyses the relationship between cost accounting & financial accounting. Justify the necessity of application of cost accounting in business concern.                (12+8)

2. Describe in detail the procedure of receiving & inspecting of materials. (10+10)

3. What is labour turnover? How is it measured? What steps are taken for controlling it? (20)

4. Define & discuss fixed variable & semi-variable overhead. Illustrate by giving three examples of each. (11+9)

5. How will you deal with the following items in cost accounts? (4x5)

a)   Work manager’s salary.
b)   Bad debts.
c)    Canteen expenses.
d)   Packing charges.
e)   Cleaning materials.

6. Calculate the normal & overtime wages payable to a workman on the basis of the following particulars: - (20)
                Days                                                                      Hours worked
                Monday                                                                         9
                Tuesday                                                                         8
                Wednesday                                                                 10
                Thursday                                                                      11
                Friday                                                                              9
                Saturday                                                                        5

Normal working hours are 8 hours per day & the normal rate of wages is Rs1.25 per hour. Overtime wage rate is as follows:-
Up to 9 hours in a day at single rate & over 9 hours in a day at double rate or up to 48 hours in a week at single Rate & over 48 hours at double rate, whichever is more beneficial to the workmen?

7. A machine was purchased on 1/1/90 for Rs5 lakes. The total cost of all machinery inclusive of the new machine was Rs75 lakes. The additional particulars are as follows:-

Expected life of the machine                                                                                                      10 years
Scrape value at the end of 10 yrs                                                                                                Rs5000
Repairs & maintenance of the machine during the year                                                  Rs20000
Expected number of working hours of the machine each year                                    4000 hours
Annual insurance premium for all the machines                                                                 Rs4500
Electricity consumption for the machine per hour (75 paisa per unit)                        25 units
Floor area occupied by the machine                                                                                        1000 sq.m.
Rent per month for the department                                                                                       Rs800
Lighting charges for twenty points for the whole department (out of which three Are for the machine) per month Rs120.  Compute the “machine hour rate” of the new machine on the basis of the above data. (20) 

8. Compute material cost variance, material price variance & material usage variance for an output of 200 units from the information given below: - (20)

                Standard quantity                            3 kg per unit of output
                Standard price                                   Rs2 per kg
                Actual quantity consumed           550 kg
                Actual price                                        Rs3 per kg.