Cost and Management Accounting-Performance Appraisal

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COST AND MANAGEMENT ACCOUNTING-PERFORMANCE APPRAISAL – (S-303) STAGE-3 Extra Reading Time: Writing Time: (i) (ii) (iii) 15 Minutes 02 Hours 45 Minutes Maximum Marks: 90 Roll No.: Attempt all questions. Answers must be neat, relevant and brief. In marking the question paper, the examiners take into account clarity of exposition, logic of arguments, effective presentation, language and use of clear diagram/ chart, where appropriate. (iv) Read the instructions printed inside the top cover of answer script CAREFULLY before attempting the paper. (v) Use of non-programmable scientific calculators of any model is allowed. (vi) DO NOT write your Name, Reg. No. or Roll No. anywhere inside the answer script. (vii) Question No.1 – “Multiple Choice Question” printed separately, is an integral part of this question paper. (viii) Question Paper must be returned to invigilator before leaving the examination hall. Answer Script will be provided after lapse of 15 minutes Extra Reading Time (9:30 a.m. or 2:30 p.m. [PST] as the case may be). Q. 2 ‘Metallic Finishers’ is a leading paint spraying company. The metal products of three (3) customers are sprayed by the company. Each customer requires different numbers of coats as given below along with consumption of paint per unit: Customers X Y Z Coats 7 6 5 Litres 7.6 8.6 6.3 Marks Monthly production data of each customer’s product is budgeted as follows: X Y 5,400 4,360 27 20 30 45 152 111.80 Z 3,600 40 75 189 Units to be sprayed Batches of paint required (No.) Machine attendants time (Minutes) Cost of paint per unit (Rs.) Machine attendants are paid Rs. 53 per hour. Overhead costs are absorbed on the basis of labour hours. Following are the monthly budgeted overheads showing the bases of cost driver in activity based costing approach: Activity Amount (Rs.) Cost driver Paint stirring and quality control 240,810 Batch

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