Paper of Fdi

81178 Seat No.__________
Third Year B. B. A. Examination
April / May – 2003
Management Accountancy
Time : 3 Hours] [Total Marks : 70
Instructions : (1) Figures to the right indicate marks of the questions. (2) Show calculation wherever necessary.
1 Define Management Accountancy ? Differentiate 7
Management Accountancy and Financial Accountancy.
OR
1 Write notes in detail on “activity based costing”. 7
OR
2 Modern Manufacturers Ltd. have three production 7 departments P1, P2 and P3 and two service departments
S1 and S2, the details pertaining to which are as under :
Particulars P1 P2 P3 S1 S2
Direct wages (Rs.) 3,000 2,000 3,000 1,500 195
Working hours 3,070 4,475 2,419 — —
Value of machines (Rs.) 60,000 80,000 1,00,000 5,000 5,000
Horse-power
of machines 60 30 50 10 —
Light points 10 15 20 10 5
Floor space
(sq. feet) 2,000 2,500 3,000 2,000 500
The following figures are extracted from the accounting records :
Rs.
Rent and Rates ......................... 5,000
General lighting ........................... 600
Indirect Wages ........................... 1,939
81178] 1 [Contd....
Power........................................... 1,500
Depreciation on machines ...... 10,000
Sundries ...................................... 9,695
The expenses of the service departments are to be allocated as under :
P P P S S
S 20% 30% 40% 10%
S 40% 20% 30% 10%
1 2 3 1 2
1
2
-
-
Prepare a statement showing distribution of overheads to various departments and redistribution of service departments expenses to production departments applying
"Repeated distribution method".
2 The standard mix of product ‘X’ is as follows : 11
Material Kgs. Price per kg. Rs.
A 50 5
B 20 4
C 30 10
100
The standard loss in production is 10% of the input.
There is no scrap value.
Actual production of product ‘X’ was 5400 kgs. Actual consumption of material and cost were as follows :
Material Kgs. Price per kg.
A 3,170 5.50
B 1,260 3.75
C 1,920 9.50