B.B.A. (Semester II) (CBCS) Examination Oct/Nov-2017
COST ACCOUNTING
Day Date: Wednesday, 15-11-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 PM
Instructions: All questions are compulsory.
Use of Calculator is allowed.
Q.1 Choose correct alternatives: 07
scheme creates team spirit which in turn leads to high output.
Time Rate Piece Rate Group Bonus
A responsibility center which is held by management both for cost and
revenue and thus for profit is termed as
Investment Center Profit Center Cost Center
Fixed Cost per unit with increase in output.
Reduces Increases Remains constant
Prime Cost comprises the combination of following costs:
Direct Materials and Factory Overhead
Direct Labour and Factory Overhead
Direct Materials, Direct Labour and Direct Expenses
Directors Remuneration is treated as
Factor Overhead
Selling and Distribution Overhead
Administrative Overhead
If Cost of Sales exceed Sales it will be
Profit Loss No Profit No Loss
Storekeeper should initiate a purchase requisition when stock reaches

Minimum Level Danger Level Re-order Level
Q.1 Fill in the blanks: 07
If Contribution per unit is Rs. 15 and Fixed Costs are Rs. 75000, the
breakeven point in units is equal to
If Contribution per unit Rs.20 and Sales per unit Rs. 50, the PV Ratio
cent.
If Margin of Sales Rs.20000; BES Rs. 200000, then Actual Sales

Time Rate Rs.50 per hour, Production in a day 900 unit, Hours Worked
8 hours. How much wages will the worker earn under Time Rate
System?
If Direct Labour is Rs.56000 and Factory overheads 68% of Direct
Labour, Then factory overhead Rs.
Sales Rs. 480000 and Profit 20% on Cost of Sales, then Cost of Sales
Rs.
When standard output is 8 units per hour and actual output is 11 units per
hour, the efficiency is per cent.
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SLR-CB-8
Q.2 Solve any two questions from the following: 14
Calculate the total wages earned by a workman for a working day of 8 hours
under Halsey and Rowan Plan
Standard production per hour 200 units
Actual Production of the day 1900 units
Wage rate per hour Rs. 50
Prepare a Store Leger Account using FIFO Method of pricing the issue of
materials:
April 1 Opening Balance 10850 Kg Rs.130 per Kg
2 Purchased 20000 Kg Rs.134 per Kg
3 Issued 6750 Kg to Production Dept
5 Issued 8500 Kg to Production Dept
6 Received Back 550 Kg from Production Dept
7 Purchased 17550 Kg Rs. 128 per Kg
8 Issued 11250 Kg to Production Dept
Short a Note on
Nature and Scope of Cost Accounting
Q.3 Solve any two questions from the following: 14
The expenses budgeted for production of 75000 units in a factory are as
follows:
Per Unit
Materials 75
Labour 25
Variable Overheads 12
Fixed Overheads (Rs. 600000) 8
Variable Expenses (Direct) 16
Selling Overheads Fixed) 10
Total Cost of Sale Per Unit 146
Prepare a budget for production of 100000 units.
Calculate EOQ and No. of Orders in a year:
Annual Demand 25000 Kg
Cost of placing one order Rs.125
Carrying Cost per unit per annum Rs. 0.25

Write note on Elements of Cost
Q.4 Solve any one questions from the following: 14
Sales 8555 units
Selling Price P.U Rs. 48.00
Fixed Cost (Total) Rs. 42500
Variable Cost Per Unit
Direct Materials Rs.16.00
Direct Labour Rs.6.50
Variable Overhead 90% of Direct Labour Cost
From the details calculate:
Variable Cost per unit
Contribution per unit
Total Profit
V Ratio
BEP (in Rs)
BEP (in Units)
MOS (in in Rs)
Explain different types of budgets.
Page 3 of 3
SLR-CB-8
Q.5 Solve any one questions from the following: 14
Prepare a cost sheet determine the profit when the selling Price is Rs. 127 per
unit.
Particulars Cost Particulars Cost
Raw materials
consumed
Rs.350000 Office overheads of factory
cost
Direct wages Rs.75220 Selling overheads Rs.7 per unit
Factory Overheads Rs.20550 Units produced 5500 units
Direct Expenses Rs.47350 Units Sold 4570 units
A manufacturing company has three production departments and two service
departments, Overheads allocated for a period to these departments are as
follows:
Production
department:
Rs.
Service
Department
Rs.
A 1225000 X 500000
B 1130000 Y 800000
C 1120000
Basis of Apportionment:
Department A B C D E
X 40% 30% 20% 10
Y 50% 30% 20%
Re-apportion the overheads of Service Departments by Simultaneous
Equation Method.