Solution-

# Question No. 01;

 Receipt Investment Balance Date Q U.C Amount Q U.C Amount Q U.C Amount 1st Jan 4000 20 80000 - - - 4000 20 80000 10th Jan 1040 21 21840 - - - 1040 21 21840 19th Jan 10401760 2120 2184035200 4000 2240 20 20 448000 4th  Feb 16001200 2325 3680030000 224016001200 202325 4480003680030000 13th Mar 12001280300660 25232320 3000029440690013200 20th Apr 2000 22 44000 15802000 2022 3160044000 30th Apr 1520 22 33440 1580470 2022 3160010340

Quantity at the end = 2050 Unit

Amount at the end = 41940 Amount

1. ## Selling Price Per Unit;

Selling Price Per Unit=SalesNo.of items per unit sale Sale=15000 unit ×25% on cost Total cost=V.cost+F.Cost =P.14+2P.Unit =16 per unit cost Sales=15000 unit×16 per unit+25% profit =240000+25% profit =240000+60000=300000 Sales=300000 By putting in formula;

Selling Price Per Unit=30000015000=20 per Unit Selling Price Per Unit=20 per Unit 1. ## Contribution Per Unit;

Contribution Per Unit=Variable cost per unit-Selling price per unit Selling Price=16 per Unit cost+20% profit =16+4=20 per unit Selling Price=20 per unit By putting in formula;

Contribution Per Unit=P 14-20P Contribution Margin=4 per Unit 1. ## Break Even Unit;

Break Even Unit=Fixed costRevnue p.unit-variable cost By putting in formula;

Break Even Unit=24-14=210=0.2 Break Even Unit=0.2 1. ## Profit Ratio;

Net Profit Margin Ratio=Revnue-CostRevnue Net Profit Margin Ratio=300000-240000300000=0.2 Net Profit Ratio # Question No. 03;

1. ## Allocation of Cost;

 Dep A Dep B Dep C Store Maintenance Store 40000 30000 20000 - 10000 Maintenance 44000 16000 16000 4000 - Total Overhead 48000 46000 36000 4000 10000

## Purpose of Standard Costing;

• Provide formal bases for assessing performance.
• Control and eliminate cost by setting standards.
• Help to set budget.
• Making decision.
• Performance evaluation.
• Cost control and cost reduction.

1. ## Material Cost Variance;

Material Cost Variance=Standard price per unit of direct material-Actual price per unit of direct material×Actual quantity of direct material =2.50-3.5×0.35 Material Cost Variance=0.35 1. ## Material Price Variance;

Material Cost Variance=Actual price per unit of direct material-budget price per unit of material×Actual quantity of direct material used =3.5-2.50×0.35 Material Price Variance=0.35 1. ## Material Usage;

Material usage=fav or unfav quantity×standard cost per unit =3 litres×2.5 Material usage=7.5 ## Question No. 05

 Process Amount(Process One) Material Labor Overhead Production overhead 200% 18000 1000 3000 2000 Closing Stock F. Goods Transfer to Process two - - 24000 24000 24000

 Process Amount(Process Two) D.Material D.Labor D.Expense P. Overhead 3000 2000 - 4000 Closing Stock F. Goods Transfer to Process three - - 9000 9000 9000

 Process Amount(Process Three) D.Material D.Labor D.Expense Production Cost 1000 1000 2000 2000 Closing Stock Transfer to -  6000 6000 6000

1. ## Cost Per Unit Absorption;

Per Unit Cost=D.M+D.L+Variable overhead+Fixed cost per unit =400000200000+600000200000+600000200000 =2+3+3 Per Unit Cost=8 per unit cost 1. ## Marginal Costing;

Marginal Costing=Change in cost producing more unitChange in number of goods produce 1. ## Absorption Cost Profit;

2.
 Income StatementJanuary Less Sales          (200000×10) Cost of Sale(400000+600000) 200000 100000 Gross Profit 100000 Less Operating Expense 600000 Net Income 400000

Question No.07 (a)

1. ## Meaning of Flexible Budget;

“A flexible budget means a budget that flexible to adjust or flex with changes in quantity or activity.”

The flexible budget more used by companies than static budget.

Flexible budget help in;

• Comparison of actual cost accrued for that level of activity.
• Help in better planning and understanding

## Question No.07 (b)

1. Flexible Budget;

Flexible Budget=Variable cost per unit×Actual production per unit =8.3×2400=19920 Flexible Budget=19920 1. ## Variance Analysis;

Flexible Variance=60000-19920 Flexible Variance=40080 Actual Variance=60000-19920 Actual Variance=40080 # Our happy customers

They are fast in responding to homework questions. they have the best technical writers. Thanks for helping me with my programming doubts. Dyana
5 I contact to disklib for homework, they help me out, despite there was some technical issue they gone through extra mile for me and provide me good quality work in first priority. 100% recommended. Asif Waheed
5 Desklib's study resources are best & unique. Their study database is easy to access and easy to use.
100 % recommended. Mike Taylor
5 