Standard cost data of a product manufactured by Beta Ltd. is as follows: - Standard Material per unit of output: 5 kg @ ₹20 per kg - Standard Labour per unit of output: 3 hours @ ₹30 per hour Actual results for the month of October 2024 for an actual output of 2,000 units: - Material consumed: 10,800 kg at a total cost of ₹2,05,200 - Labour hours paid and worked: 5,800 hours at a total cost of ₹1,85,600 Compute the following variances: 1. Material Cost Variance (MCV), Material Price Variance (MPV), Material Usage Variance (MUV) 2. Labour Cost Variance (LCV), Labour Rate Variance (LRV), Labour Efficiency Variance (LEV)

A manufacturing company has a Profit-Volume (P/V) Ratio of 40% and fixed costs of ₹12,00,000 per annum. If the selling price per unit is ₹100, what is the Break-Even Point (BEP) in sales value and units, and what sales value is required to earn a target profit of ₹6,00,000?

Question 6 (a) Explain the steps involved in procedure for reconciliation of Cost & Financial accounts. Also explain the circumstances where reconciliation statement can be avoided. (3+2 = 5 Marks) (b) State cost unit of the following Industry Sector: Industry Sector Cost Unit Oil Professional services Education Brick-making Education Brick-making Engineering Electricity Hotel/Catering Coal mining Brewing Hospitals (5 Marks) (c) Explain the methods that can be used for controlling Selling and Distribution Overheads. (4 Marks) OR (c) Suggest any one basis of re-apportionment of service department overheads over production departments in the following contexts: Cost of the Service Departments Basis Planning and progress Transport Department Personnel Department Fire Protection Power House (electric lighting cost) Computer Section Canteen and Welfare Hospital and Dispensary (4 Marks)

10. Keeping the management purchase policy & production quantity mix in consideration for SS304 & SS316, the maximum number of units of each product that company would produce (in units) respectively by utilizing 1200 tons of raw material:

Question 4 (a) NT Ltd. showed a net loss of ₹ 9,000 as per their cost accounts for the year ended 31-03-2025. However, the financial books disclosed a net profit of ₹ 7,000 for the same period. The following information was revealed as a result of scrutiny of the figures of both the sets of books: (`) Factory overheads absorbed 52,000 Selling & distribution overheads over absorbed 6,000 Administrative overheads under absorbed 7,500 Interest on Loan 8,800 Dividend received 9,000 Factory overheads charged 45,000 Depreciation charged in financial accounts 42,000 Depreciation recovered in cost accounts 45,000 There is the difference in the value of closing stock of finished goods due to varying basis of valuation. 500 units of closing stock is valued at ₹ 41,000 in cost accounts whereas market price per unit of closing stock is ₹ 80 per unit. It is found that there is still a difference in the reconciliation statement after considering all of the above which is due to the excess of raw material consumption in cost accounts. Prepare: (i) A reconciliation statement taking net loss as per cost accounts as base, and (ii) Find out the excess of material consumption during the period in cost accounts effectuated the difference in reconciliation. (8 Marks) (b) A manufacturing unit using Standard costing system and the following information was obtained from its records: Standard Actual Production 4,800 units 4,560 units Working days 25 27 COST AND MANAGEMENT ACCOUNTING Fixed overhead ₹ 48,000 ₹ 46,800 Variable overhead ₹ 14,400 ₹ 14,400 Required: Calculate the following overhead variances: (i) Variable overhead variance (ii) Fixed overhead variance (iii) Fixed overhead Expenditure variance (iv) Fixed overhead Volume variance (v) Fixed overhead Calendar variance (6 Marks)

Question 1 (a) Language Achievers, a renowned institute specializing in TOEFL preparation, has secured a spacious hall for 20,000 on weekly basis with a seating capacity of 250 students. The instructor, highly qualified and experienced, is compensated generously with an honorarium of 1,500 per lecture. Additionally, he receives reimbursement for travel expenses of ₹ 200 per day along with refreshments costing 1,500 per week to ensure his comfort and focus during teaching sessions. Administrative and miscellaneous expenses, covering essential utilities and materials are, 500 per week. Language Achievers has meticulously planned its curriculum, scheduling batches of 2 lectures per day, 5 days a week for 30 weeks, ensuring comprehensive coverage of the TOEFL syllabus. Required: (i) Calculate the total cost per batch. (ii) Determine the minimum fee per student in a batch to cover costs, if the batch is fully occupied. (iii) Calculate the fee to be charged from. each student if batch is 80% filled and institute aims to achieve a profit margin of 25% on the fee. (5 Marks) COST AND MANAGEMENT ACCOUNTING (b) XYZ Ltd. declared a net profit of ₹ 2,25,000 based on their financial accounts for the year ending 31st March, 2024. The profit disclosed in cost books are not matched with financial accounts. The following information were revealed during the scrutiny of the figures of both the sets of books: Sr. No. Particulars ₹ 1. Preliminary expenses written off in financial accounts 35,000 2. Factory Overheads Over charged in cost accounts 20,000 3. Expenses on issue of shares in financial accounts 30,000 4. Undervaluation of closing stock in cost accounts 65,000 5. Interest on Bank Deposits in financial accounts 60,000 6. Under recovery of administration overheads in cost accounts 25,000 7. Notional Rent of own premises charged in cost accounts 30,000 8. Under recovery of selling overheads in cost accounts 35,000 9. Bad debts recovered in financial accounts 50,000 Required: Prepare Reconciliation Statement to arrive at net profit/loss as per Cost Accounts. (5 Marks) (c) JC Ltd. has a production capacity of 80,000 units per year. Presently a company produces 60,000 units. Its cost structure is as under: Material Cost ₹ 6 per unit Labour Cost ₹ 4 per unit Variable overheads ₹ 2 per unit Total fixed cost ₹ 3,00,000 per annum. Present selling price ₹ 20 per unit in the month of January, 2024 company received an offer from a Japanese client to supply 20,000 units at a price of ₹ 14 per unit with the additional shipping cost of ₹ 8,000. Required: (i) On the basis of changes in the profit, advice to the company, whether the offer should be accepted or not? (ii) Will your advice be different, if the customer is local one? (iii) If Japanese client offer for supply of 30,000 units to a price of ₹ 14 (part supply of order not accepted) and shipping cost treated as variable cost, analyze the impact on the profit of JC Ltd., if order accepted. (4 Marks)

Question 2 (a) MNP Limited have the capacity to produce 84,000 units of a product very month. Its prime cost per unit at various levels of production is as follows: Level Prime Cost per unit (`) 10% 50 20% 48 30% 46 40% 44 50% 42 60% 40 70% 38 80% 36 90% 34 100% 32 Its prime cost consists of raw material consumed, direct wages and direct expenses in the ratio of 3 : 2 : 1. In the month of January 2024, the company worked at 40% capacity and raw material purchased amounting to ₹ 8,40,000. In the month of February 2024, the company worked at 100% capacity and raw material purchased for ₹ 16,46,400. It is the policy of the company to maintain opening stock of raw material equal to 1/3 of closing stock of raw material. Factory overheads are recovered at 60% of direct wages cost. Fixed administration expenses (as part of production cost) and fixed selling and distribution expenses are ₹ 2,01,600 and ₹ 1,68,000 per month respectively. During the month of January 2024 company sold 33,600 units @ ₹ 68.8 per unit. The variable distribution cost amounts to ₹ 1.5 per unit sold. The management of the company chalks out a pl for the month of February 2024 to sell its whole output @ ₹ 61 per unit by incurring following further expenditure : (i) Company sponsors a television programme on every Sunday at a cost of ₹ 26,250 per week. There are 4 Sundays in February 2024. (ii) Hi-tea programme every month for its potential customers at a cost of ₹ 1,05,000. (iii) Special gift item costing ₹ 105 on sale of a dozen units. (iv) Lucky draws scheme is introduced every month by giving the first prize of ₹ 1,00,000; second prize of ₹ 80,000; third prize of ₹ 40,000 and four consolation prizes of ₹ 8,000 each. Note: (In the month of February 2024, there is a significant saving in material cost per unit due to entry of new suppliers in the market and saving in per unit cost of Direct wages and Direct expenses due to introduction of new· policy by the management.) Prepare a cost sheet for the month of January 2024 and February 2024 showing prime cost (with different elements of prime cost), factory cost, cost of production, total cost and profit earned. (8 Marks) (b) In a factory there are 50 workers, working 8 hours per day including 30 minutes for lunch break, worked for 160 days during a period of six months ended on 31st December, 2023. During this period total employee's cost was recorded ₹ 3,90,000. The management of the factory decided the overtime premium rates for the month of January 2024 as under : Sundays and holidays 180% of basic wages rate Before and after normal working hours 160% of basic wages rate COST AND MANAGEMENT ACCOUNTING During the last six months (ended on 31st December, 2023), the following hours were worked: Normal time 56,250 Sundays and holidays 750 Before and after normal working hours 3,000 Total hours· 60,000 During the month of January 2024, the factory worked on a job BX in the following manner. Normal working 2,400 men hours Overtime on Sundays and holidays 200 men hours Overtime before and after normal working 400 men hours Total hours 3,000 You are required to calculate the labour cost chargeable to job BX and overheads in each of the following situations: (i) Where overtime is worked regularly in whole year as a policy on account of shortage of workers. (ii) Where overtime is worked irregularly to meet the requirement of production. (iii) Where overtime is worked at the request of the customer to complete the job in time. (iv) Where overtime is worked on account of flood in the area. (6 Marks)