Email me

Friday, June 8, 2012

CA Final Class

PREMIER ACADEMY 



No.222, RK Mutt Road, 2nd Floor, Next to Canara Bank, Opp. to TVS Showroom, Mandaveli, Chennai – 28, 044-24622694 / 9940623954


CA Final Class


Cost Mgt. & QT


(For Nov '12 CA Exams)



BATCH – I


Starts on : 12th June


Timing: 6.15 -8.45am 


Days : T/T/Sat.


Duration : 3 Months


 


BATCH – II


Starts on : 25th June


Timing: 1.45 -5.15pm 


Days : Mon to Fri day


Duration : 1 ½  Months


 


Faculty :


Costing – CA.K.Hariharan;


QT – Dr.P.R. Vittal


 


Fee:Costing Rs.4500; QT Rs.1500


(including course materials + 7 model exams)


 


CA Final Class


Indirect Tax


 (For Nov '12 CA Exams)



Starts on : 25th June


Timing: 5.30pm-8.30pm 


Days : Mon to Fri day


Duration : 1 Month


Fee: 4,500


(including a Book, course materials + model exams)


 


Faculty :


IDT-CA.N.Raja Sekhar


Fee: 4,500 (including a Book, course materials + model exams)


Follow Rediff Deal ho jaye! to get exciting offers in your city everyday.

Thursday, June 7, 2012

Assignment Questions - BUDGETARY CONTROL

Assignment Questions

 

BUDGETARY CONTROL

 

Question 1. The cost sheet of a company based on a budget volume of sales of 4,00,000 units per quarter is asunder :

(` Per unit)

Direct materials                                                                     6.00

Direct wages                                                               3.00

Factory overheads (50% fixed)                                             8.00

S/ Adm. Overheads (1/3 variable)                             4.50

Selling price                                                                            24.00

When the budget was discussed it was felt that the company would be able to achieve only a volume of 3,00,000 units of production and sales per quarter. The company therefore decided that an aggressive sales promotion campaign should be launched to achieve the following improved operations :

 

Proposal I :

- Sell 5,00,000 units per quarter by spendingRs.2,50,000 on advertising.

- The factory fixed costs will increase byRs.4,00,000 per quarter.

 

Proposal II :

Sell 6,00,000 units per quarter subject to the following conditions :

- An overall price reduction ofRs.2 per unit is allowed on all sales.

- Variable selling and administration costs will increase by 6%.

- Direct material costs will be reduced by 1.5% due to purchase price discounts.

- The fixed factory costs will increase byRs.2,50,000 more.

You are required to prepare a Flexible Budget at 3,00,000, 5,00,000 and 6,00,000 units of output per quarter and calculate the profit at each of the above levels of output.

 

 

Question 2.. The following budget of PQ Company Limited, a manufacturing organization, has been prepared for the year 2010 :

(% of sales value)

Raw materials                                                                                                40

Direct wages                                                                                                   25

Factory overheads (fixed)                                                                              5

Factory overheads (variable)                                                                        10

Administration and selling and Distribution Overheads (variable)            6

Administration and selling and distribution overheads (fixed)                   12

Profit                                                                                                              2

Sales Value                                                                                                      100

           

After considering the quarterly performance, it is felt that the budgeted volume of sales would not be achieved. But the company expects to achieve 80% of the budgeted sales (equivalent to a sales value ofRs.1,60,00,000).

 

You are required to present the original budget and the revised budget based on 80% achievement of the target sales, showing the quantum of profit (loss) for both .

 

Question 3. A company is at present working at 90% of its capacity and producing 13,500 units per annum. It operates a Flexible Budgetary Control System. The following figures are obtained from its budget.

Rs.

Particulars                                                                 Capacity utilization

90%                 100%

Sales                                                                            15,00,000         16,00,000

Fixed expenses                                                            3,00,500           3,00,600

Semi-fixed expenses                                                    97,500             1,00,500

Semi-variable expenses                                              1,45,000           1,49,500

Units manufactured                                                  13,500             15,000

 

Labour and material costs per unit are constant under the present conditions. Profit margin is 10%.

 

Prepare a flexible budget and you are required to determine the differential cost of producing 15,000 units by increasing capacity utilization to 100 per cent.

 

Question No. 2

 

The following are the estimated sales of a company for eight months ending 30.11.2007

Month (2007)

Estimated Sales in Units

April

12,000

May

13,000

June

9,000

July

8,000

August

10,000

September

12,000

October

14,000

November

12,000

As a matter of policy, the company maintains the closing balance of finished goods and raw materials as follows:

Stock Item

Closing Balance of a month

Finished Goods

50% of the estimated sales for the next month

Raw Materials

Estimated consumption for the next month

 

Every unit of production requires 2 kg of raw material costing Rs. 5 per kg.

 

Prepare Production Budget (in units) and Raw material Purchase Budget (in units and cost) of the company for the half year ending 30 September 2007.

 

 

ANSWER HINTS

Question No.

Answer

1              

Profit Rs. 50,000;  Rs.               13,00,000; Rs.10,50,000

2

Profit Rs.2,00,000; Loss Rs.360,000

3

Differential cost Rs. 97,267

4

Total Production 65,000 Units; Totoal Purchase 131,000 Kgs; & Rs.6,55,000

 


Tuesday, June 5, 2012

CA Class Schedule

PREMIER ACADEMY 

No.222, RK Mutt Road, 2nd Floor, Next to Canara Bank, Opp. to TVS Showroom, Mandaveli, Chennai – 28, 044-24622694 / 9940623954

 

CA Final classes – Nov '12 Exams

SUBJECT

               DAYS              

Duration

Starts

TIME

Fees (Rs.)

Cost Mgt.

&

Quantitative Tech.

(Batch I)     T/T/S

Morning Batch

3 Months

7/6/12

6.15 – 8.45am

Costing 4500

&

QT 1500

(Batch II)   Mon to Fri day

Day Batch

1½ Month

25/6/12

1.45-5.15pm

Indirect Taxation

Mon to Fri day

 

1 Month

25/6/12

5.30 – 8.30pm

4500

Financial Reporting

M/W/F

3 Months

8/6/12

6.30 – 8.45am

5250

 

Faculty

Cost Mgt.

CA.K.HARIHARAN, FCA

Quantitative Tech.

Dr.P.R.VITTAL

Indirect Taxation

CA.N.RAJA SEKHAR, FCA

Financial Reporting

CA.K.SHANMUGANATHAN, FCA

CA IPCC classes – Nov '12 Exams

SUBJECT

Faculty

Duration

Starts

TIME

Fees (Rs.)

Accounts – I

CA.K.SHANMUGANATHAN, FCA

3 Months

25/6/12

9.45am – 1.30

 

4500

Income Tax

 

CA.SEETHALA DEVI, ACA

3500

Service Tax & VAT

CA.N.RAJA SEKHAR, FCA

1500

Auditing

CMA.SUBRAMANIAN, FICWA

3500

Info. Tech & SFM

PROF. BVN.RAJESWER

4000

Costing & FM

CA.K.HARIHARAN, FCA

1½ Month

Mon to Fri day

25/6/12

5.30pm-8pm

5250

Accounts - II

CA.K.SHANMUGANATHAN, FCA

2 Months

Mon to Fri day

25/6/12

2-5pm

4500

Venue

PREMIER ACADEMY

Registration at

  (Pre registration is must)

10/9, Flat no.6, 2nd Floor,

Rainbow Apartments, Norton 1st Street

Mandaveli, Chennai - 600 028

Ph: 98416 61405     99406 23954 / 044 – 2462 2694

Ø               Eminent Faculties from SIRC of  ICAI

Ø               Free Model Exam

Ø               Free Course material & Books

Ø               Individual attention

Ø               No registration Fee


Assignment Questions - MARGINAL COSTING

Assignment Questions

 

MARGINAL COSTING

 

Question 1. A company has a P/V ratio of 40%. Selling price Rs.100,  By what percentage must sales be increased to offset: 20% reduction in selling price?

 

Question 2. If P/V ratio is 60% and the Marginal cost of the product is Rs.20. What will be the selling price?

 

Question 3. ABC Ltd sells a single product for Rs. 9 per unit. The variable cost is Rs. 6 per unit and the fixed cost total Rs. 54,000 per month. In a period when the actual sales were Rs.1,80,000, ABC Ltd. Find Margin of Safety in units.

 

Question 4. A company produces single product which sells for Rs. 20 per unit. Variable cost is Rs. 15 per unit and Fixed overhead for the year is Rs. 6,30,000.  Calculate sales value needed to earn a profit of 10% on sales.

 

Question 5. A company has fixed cost of Rs. 90,000, Sales Rs. 3,00,000 and Profit of Rs. 60,000.

Required:

(i) Sales volume if in the next period, the company suffered a loss of Rs. 30,000.

(ii) What is the margin of safety for a profit of Rs. 90,000?

 

 

Question 6. Product Z has a profit-volume ratio of 28%. Fixed operating costs directly attributable to product Z during the quarter II of the financial year2009-10 will be Rs.2,80,000. Calculate the sales revenue required to achieve a quarterly profit of Rs. 70,000.

 

Question 7. Following informations are available for the year 2008 and 2009 of PIX Limited:

Year                            2008                2009

Sales               Rs. 32, 00,000            Rs. 57, 00,000

Profit/(Loss)    (Rs. 3,00,000)             Rs. 7, 00,000

 

Calculate –(a) P/V ratio, (b) Total fixed cost, and (c) Sales required to earn a Profit of

Rs. 12,00,000.

 

Question 8. MNP Ltd sold 2,75,000 units of its product at  Rs.37.50 per unit. Variable costs are Rs.17.50 per unit (manufacturing costs of  Rs.14 and selling cost Rs.3.50 per unit). Fixed costs are incurred uniformly throughout the year and amount to Rs.35,00,000 (including depreciation of Rs.15,00,000).There are no beginning or ending inventories.

Required:

(i) Estimate breakeven sales level quantity and cash breakeven sales level quantity.

(ii) Estimate the P/V ratio.

(iii) Estimate the number of units that must be sold to earn an income (EBIT) of Rs.2,50,000.

(iv) Estimate the sales level achieve an after-tax income (PAT) of  Rs.2,50,000. Assume 40% corporate Income Tax rate.

 

 

 

 

ANSWER HINTS

Question No.

Answer

1              

Rs.100 to Rs.160

2

Rs.50

3

2000 units

4

Rs. 42,00,000

5

i. Rs. 1,20,000.; ii. Rs. 1,80,000.

6

Rs.12,50,000

7

a. 40%; b. Rs.15, 80,000; c. Rs.69, 50,000

8.

i. 1,75,000 units; ii. 53.33 %; iii. 187500 units; vi.Rs.73,43,750/-

 


Monday, June 4, 2012

Assignment Questions - STANDARD COSTING

Assignment Questions

 

STANDARD COSTING

 

Question 1.  Following details relating to product X during the month of April, 2009 are available:

Standard cost per unit of X :

Materials : 50 kg @ Rs.40/kg

Actual production : 100 units

Actual material cost : Rs.42/kg

Material price variance : Rs.9,800 (Adverse)

Material usage variance : Rs.4,000 (Favourable)

Calculate the actual quantity of material used during the month April, 2009.

 

Question 2. The standard and actual figures of product 'Z' are as under:

Standard Actual

Material quantity 50 units 45 units

Material price per unit Re. 1.00 Re. 0.80

Calculate material cost, Price & Usage variances.

 

Question 3. The standard and actual figures of a firm are as under

Standard time for the job 1,000 hours

Standard rate per hour Re. 0.50

Actual time taken 900 hours

Actual wages paid Rs. 360

Compute the variances

 

Question 4. Compute total sales variances, Price & Volume variance from the following figures: -

Product

Budgeted

 Quantity

Budgeted

Price

Actual

Quantity

Actual

Price

A

2,000

2.50

2,400

3.00

B

1,500

5.00

1,400

4.50

C

1,000

7.50

1,200

7.00

D

500

10.00

400

10.50

 

Question 5. During a period 25,600 labour hours were worked at a standard rate of Rs. 7.50 per hour. The direct labour efficiency variance was Rs. 8,250 (A). How many standard hours were produced?

 

Question 6.  During a period 850 assemblies were made with a nil rate variance and a Rs. 4,400 adverse efficiency variance. If the standard labour hours per assembly are 24 with a Rs. 8 per hour standard labour cost, how many actual labour hours were worked?

 

Question 7 The actual and standard direct material costs for producing a specified quantity of product are as follows:

Actual

51,000 kgs. at Rs. 5.05

Rs. 2,57,550

Standard

50,000 kgs. at Rs. 5.00

Rs. 2,50,000

Find direct material price variance.

 

Question 8. Nandana Ltd. manufactures a commercial product for which the standard cost per unit is as follows:

 

Rs.

Material:

       5 kg. @ Rs.4 per kg.

 

20.00

Labour:

      3 hours @ Rs.10 per hour

 

30.00

Overhead:

      Variable: 3 hours @ Rs.1

      Fixed: 3 hours @ Rs.1.50

 

3.00

1.50

Total

54.50

 

 

 

 

 

 

                                                                                                                                                             

 

 

 

During Jan. 2012, 600 units of the product were manufactured at the cost shown below:

 

Rs.

Materials purchased

5,000 kg. @ Rs.4.10 per kg.

 

20,500

Materials used:3,500 kg.

 

Direct Labour:

      1,700 hours @ Rs.9

 

15,300

Variable overhead

Fixed overhead

1,900

900

Total

38,600

 

 

 

 

 

 

 

 

 

 

The flexible budget required 1,800 direct labour hours for operation at the monthly activity level used to set the fixed overhead rate.

Calculate:

(a)     Material price variance,

(b)     Material Usage variance,

(c)     Labour rate variance,

(d)     Labour efficiency variance,

(e)     Variable overhead expenditure variance,

(f)      Variable overhead efficiency variance,

(g)     Fixed overhead expenditure variance,

(h)     Fixed overhead volume variance,

(i)       Fixed overhead capacity variance, and

(j)      Fixed overhead efficiency variance

 

 

ANSWER HINTS

Question No.

Answer

1

4900 kg

2

Material cost variance Rs. 14(F); Price variance Rs. Rs.9 (F); Usage variance Rs. Rs.5 (F)

3

labour cost variance Rs. 140(F); Rate variance Rs. 90 (F); Efficiency variance Rs. 50 (F)

4

Total Sales variance Rs. 1,100 (F); Sales price variance Rs. 100(F); Sales volume variance Rs. 1,000 (F)

5

24,500 hours

6

20,950 hours

7

Rs.2,550 (A)

8.

a.Material price variance Rs.500 Adv.; b.Material Usage variance Rs.2,000 Adv.; c.Labour rate variance Rs.1,700 Fav.; d.Labour efficiency variance Rs.1,000 Fav.; e.Variable overhead expenditure variance Rs. 200 Adv.; f.Variable overhead efficiency variance Rs.100 Fav.; g. Fixed overhead expenditure variance = Nil; h.Fixed overhead volume variance = Nil; i.Fixed overhead capacity variance Rs.50Adv. and j.Fixed overhead efficiency variance Rs.50 Fav

 

 


Google