Inter PN-8 Cost Accounting Quiz 16

1. Standard usage = 4 kg/unit; Expected production = 2,000 units. What is Material usage budget?

2. Budgetary slack means:

3. Cash budget: Opening ₹5,000; Receipts ₹25,000; Payments ₹30,000. Find Closing balance.

4. Planned sales = 8,000; Opening stock = 500; Closing stock = 1,000. Production budget is:

5. Budget that adjusts to activity level & cost behaviour:

6. Zero-base budgeting means:

7. Flexible budget at 12,000 units: Variable cost is ₹5/unit, Fixed cost is ₹20,000; actual Variable Cost is ₹63,000, Fixed cost is ₹22,000. Calculate total cost variance.

8. A static budget is one which:

9. A flexible budget is useful when:

10. “Master budget” usually comprises:

11. Budgeted Output = 1,000 units; Standard overhead Rate = ₹8/unit; Actual Output = 950; Actual Overhead = ₹7,800. What is Overhead Cost Variance?

12. Standard rate = ₹55/hr; Actual rate = ₹60/hr; Actual hours = 900. What is Labour Rate Variance (LRV)?

13. Standard rate = ₹50/hr; Standard time = 1,000 hrs; Actual rate = ₹52/hr; Actual time = 1,050 hrs. What is Labour Cost Variance?

14. Standard mix: A = 60%, B = 40% of 1,000 kg. Standard prices: A = ₹10, B = ₹5. Actual: A = 550kg, B = 450kg. Find Material Mix Variance.

15. Standard price = ₹20/kg, standard quantity = 500 kg, actual quantity = 520 kg, actual price = ₹22/kg. Find Material Cost Variance (MCV).

16. Paying a higher wage rate than standard leads to:

17. Actual usage = 2,100kg, standard = 2,000kg, Selling price = ₹25. Find material usage variance.