Dibrugarh University - Cost Accounting 1993

Answer any five questions:-

1. Explain the scope of cost accounting? Discuss in detail about its functions? (8+12)

2. What do you mean by perpetual Inventory system? Explain its utility? (8+12)

3. Explain the Rowan Premium plan & the Halsey Premium plan. Ascertain the differences between these two plans? (10+10)

4. What do you mean by ‘Selling overhead’? Give four examples. How are selling overheads allocated to the products?  (5+2+13)

5. Write short notes on: - (5x4)
a.    Cost centre.
b.   Elements of cost.
c.    Idle time.
d.   Taylor’s differential plan.

6. Calculate the wages & bonus of a worker from the following details under: - (10+10)
a)   Rowan Premium Bonus system.
b)   Halsey-weir Premium Bonus (50% of time saved)
The job commenced at 8:00 a.m. on the 1st Jan. The job was completed at 10:00 am on the 6th Jan. Quantity of work given Was 680 units. The work actually done was 600 units. Time allowed was 10 units per hour. Wages allowed for the work were Rs0.50 per hour. Assume that a worker has worked 9 hours per day.

7. An industrial enterprise manufactured 100 units of its products. Necessary data are given below: - (20)
                Standard quantity                            2 kg per unit
                Standard price                                   Rs5 per kg
                Actual quantity                                 3 kg per unit
                Actual price                                        Rs4 per kg
On the basis of the above data, ascertain material cost variance, material price variance & material usage variance.

8. Calculate the machine hour rate from the following information: - (20)
                Cost of the machine                                       Rs3000
                Scrap value of the machine                         Rs100
                Working life of machine                                35000 hours
                Working hours per 4 weeks                         320 hours
                Repairing expenses per 4 weeks                 Rs10
                Power – 7 units per hour @ 10 paise per unit.
                Fixed expenses per 4 weeks                       Rs70