Super 60 – IAS Mains :- Daily Answer Writing Practice for Commerce Optional UPSC (Mains)- Day 11

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#Q.1)The information given below has been taken from the costing records of
a company in respect of Job No. 303:

Materials : Rs. 4,010

Wages:
Dept. A 60 hours @ Rs. 3 per hour
Dept. B 40 hours @Rs. 2 per hour
Dept. C 20 hours @Rs. 5 per hour
Overhead expenses for these department

Variable overheads: were estimated as follows:

Dept A Rs. 5,000 for 5000 labour hours
Dept B Rs. 3,000 for 1500 labour hours
Dept C Rs. 2,000 for 500 labour hours

Fixed overheads: Estimated at Rs. 20,000 for 10,000 normal working hours.

You are required to calculate the cost of Job No. 303 and also calculate the selling price to earn a profit of 25%.

#Q.2) Dr. Sharma is a Chief Medical Officer. He receives a salary of Rs. 15,000 per month and Dearness Allowance @ 25%. He contributes 15 % of his salary to a Recognised Provident Fund. The employer also contributes an equal amount. He is provided with a Rent Free House in a city with a population of 5 lakhs. Fair rental value of the house is Rs. 6,000 per  month. He receives Hostel Allowance of Rs. 500 per month for his child.
He has let out his own house at Rs. 500 per month and paid Rs. 2,000 for Municipal tax of the house. He has the following incomes too: Dividend from a domestic company Rs.  5,000
Interest on debentures of a cooperative society Rs. 3000
Dividend from a foreign company Rs. 1,000
Share in the profits of A.O.P.Rs. 2,000.

He paid Rs. 12,000 for his own medical health insurance by cheque. He donated Rs. 1,500 to a national fund and Rs. 1,500 for promoting family planning programmes.
Compute the total income for the Assessment Year 2019 – 20. 20 Marks

#Q.3)The Cost Accountant of a company was given the following information
regarding the overheads for February, 2019 :
(1) Overhead cost variance : 1,400 adverse
(2) Overhead volume variance: 1,000 adverse
(3)Budgeted hours for February, 2016 1,200 hours
(4)Budgeted overheads for February, 2016:6,000
(5)Actual rate of recovery of overheads : 8 per hour

You are required to assist him in computing the following for February, 2019

(i) Overhead expenditure variance
(ii)Actual overheads incurred
(iii) Actual hours for actual production
(iv) Overhead capacity variance
(v)Overhead efficiency variance
(vi) Standard hours for actual production20 marks

 

SUBSCRIBE TEST SERIES AND GUIDANCE PROGRAM FOR COMMERCE OPTIONAL UPSC (MAINS)-2020


SUBSCRIBE TEST SERIES AND GUIDANCE PROGRAM FOR COMMERCE OPTIONAL UPSC (MAINS)-2019