Cost Mock Test Paper 2
Cost Mock Test Paper 2
Cost Mock Test Paper 2
There is acute competition in the market, thus extra efforts are necessary to enhance the sales.
For this, following suggestions have been proposed:
(i) Reducing selling price by 5 per cent.
(ii) Increasing dealer's margin by 20 per cent over the existing rate.
Which of these two suggestions would you RECOMMEND, if the company desires to maintain the
present profit? GIVE REASONS. (10 Marks)
(b) Tricon Co. furnishes the following information for the month of September, 2020.
Particulars Budget Details Static Budget Actual
Units produced & Sold 4,000 3,200
(Rs.) (Rs.)
Direct Material 3 kg p.u. @ Rs. 30 per kg. 3,60,000 3,10,000
Direct Labour 1 hr. p.u. @ Rs. 72 per hr. 2,88,000 2,25,600
Variable Overhead 1 hr. p.u. @ Rs. 44 per hr. 1,76,000 1,47,200
Fixed Overhead 1,80,000 1,68,000
Total Cost 10,04,000 8,50,800
Sales 12,00,000 8,96,000
Profit 1,96,000 45,200
During the month 10,000 kg. of materials and 3,100 direct labour hours were utilized.