MGT402 final
Mostly MCQS from Old Papers 52
Question
5 Mrks
Company’s sales forecast for 3rd quarter, ending
September 30, was 54,300 units.
The beginning inventory was 13,000 units.
Ending inventory was 12,200 units.
Then:
Prepare production budget for 3rd quarter?
Question
5 Mrks
Liberty Pizzas delivers their product to the
housing societies near Gulberg. The company's annual fixed costs are Rs.
400,000. The sales price of a normal size pizza is Rs. 100 and the cost to make
and deliver each pizza is Rs. 60.
You are required to calculate the following:
1. Break even sales per unit.
How many Pizzas the company must be sold in order to
earn a profit of Rs. 650,000
Question
3 Mrks
The following data of an electronic company for the
month of August is given:
|
Plant capacity
|
4,000 units per month
|
|
Fixed Cost
|
Rs. 5,000
|
|
Variable cost
|
Rs. 3.00 / unit
|
|
Sales price
|
Rs. 5.00 / unit
|
Required: Break Even point in Units and Rs
Question
5 Mrks
The Regal, Inc. makes 35,000 motors to be used
in the production of its sewing machines. The cost per motor at this level of
activity would be:
|
Particular
|
Rs.
|
|
Direct materials
|
4.50
|
|
Direct labor
|
4.60
|
|
Variable factory overhead
|
3.75
|
|
Fixed factory overhead
|
3.45
|
An outside supplier recently began producing a
comparable motor for the sewing machine. The price to Regal for this motor is
Rs. 15. If Regal decided not to make the motors, there would be no other use
for the production facilities.
Required: If Regal decides to continue making the
motor, how much higher or lower would net income be than if the motors are
purchased from the outside supplier?
Question Bazar
Company is a small family business that produces wooden plaques and
Trophies:
5 Marks
|
|
Plaques (Rs.)
|
Trophies (Rs.)
|
|
Selling price per unit
|
18
|
15
|
|
Les: Variable cost per unit
|
12
|
8
|
|
Contribution margin per unit
|
6
|
7
|
|
Contribution margin ratio
|
33%
|
47%
|
In producing the items the primary bottleneck is due
to the fact the company only has one machine, a sander, to sand the wood that
is used for the plaques or the trophies. Generally, the wood required for each
plaque takes 0.25 hour to sand, while the word required for each trophy takes
0.50 hour to sand. Based on the constraint related to the machine time, which
product should be emphasized if only limited machine time is available?
Question
3 Marks
Suppose a trader of an agriculture product has fifty
thousand to invest. Different avenues of investment are available to him are as
under:
Alternative # 1
Investment in the purchase seeds, expected return is
Rs. 150,000.
Alternative # 2
Investment in purchase of fertilizers, expected return
is Rs. 100,000
Alternative # 3
Lend out money to a friend; expected return is Rs.50,
000
Required:
Keep in view the given data calculate/identify the
following:
Opportunity cost
Opportunity loss
Question
The following detail is related to Bloch
Company.
3
|
Opening work-in-process
|
2,000 liters (100% completed to material and 40% as
to conversion cost)
|
|
Units put into process
|
24,000 liters
|
|
Closing work-in-process
|
3,000 liters (100% completed to material and 45% as
to conversion cost)
|
Required:
Find out the numbers of completed units and equivalent
production units as to material and conversion cost using weighted average
method.
Question
The Carter Manufacturing Company estimates its
production requirements to be 30,000 units for October, 38,000 units for
November and 41,000 units for December. It takes 3 direct labor hours at a rate
of Rs. 3 per hour to complete one unit.
Prepare direct Labor budget cost for the last quarter
of the year
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