Instructions: The cover page must include Name of student, Roll Number, Registration

number, Batch, WUB email Id, e-learning Id and Course Code.

Answer all questions:
1. The information given below has been taken from the costing records of an industry in respect of job No.606.
Material: Tk 8020.
Labour:
Department A 120 hours @ Tk 6 per hour
Department B 80 hours @ Tk 4 per hour.
Department C 40 hours @ Tk 10 per hour.
Overhead expenses for these 3 departments were estimated as follows:
Variable overhead:
Department A Tk 10000 for 10000 labour hours
Department B Tk 6000 for 3000 labour hours.
Department C Tk 4000 for 1000 labour hours
Fixed overhead: Estimated Tk 4000 for 20,000 normal working hours.
Required: Prepare a Job order cost sheet for Job No. 606 and calculate the price to give a profit of 25% on
selling price.
2. AMD Incorporation manufactures micro-processors. The product costing system of AMD Incorporation has a single
direct costing category (Direct Material) and a single indirect costing category (Conversion Cost). Direct materials are
added when the forming department process is 10% complete. Conversion costs are added evenly during the forming
department process.
AMD Incorporation uses weighted average method of process costing. Consider the following data for forming
department:
Physical Unit Direct Material Conversion Costs
Work in process March 1 12000 Tk 30000 Tk 8500
(Degree of completion: Direct
Material 100% Conversion cost 40%)
Started during March 2015 88,000
Completed during March 2015 80,000
Work in process March 30 20,000
(Degree of completion: Direct
Material 100% Conversion cost 25%)
Cost added during March 30 Tk 280,000 Tk 170,000
Required: Summarize total forming department cost for March 2019 and assign these costs to units completed and to
units in ending work in process. (Use Average method).

3. Flora limited has three production departments A, B & C and two service departments X &Y. The following
information relates to the month of January 2020.
Rent Tk 10,000
Depreciation of machine Tk 20,000
Motive power Tk 3000
Indirect wages Tk 23000
Lighting Tk 1200
Additional information:
A B C X Y
Area occupied (Sq. ft.) 2000 2500 3000 2000 500
Light point 10 15 20 10 5
Direct wages Tk 3000 2000 3000 1500 500
Horse power 60 30 50 10 -
Value of Machine Tk 60,000 80,000 100,000 5,000 5,000
Required: Make the apportionment of cost to the various departments on the most equitable method. (Primary
distribution)

4.Flandro Company uses a standard cost system and sets predetermined overhead rates on the basis of
direct labor-hours. The following data are taken from the company’s budget for the current year:

Denominator activity (direct labor-hours) . . . . . . . . 5,000

Variable manufacturing overhead cost . . . . . . . . . . $25,000
Fixed manufacturing overhead cost . . . . . . . . . . . . $59,000

The standard cost card for the company’s only product is given below:
Direct materials, 3 yards at $4.40 per yard …............................ $13.20
Direct labor, 1 DLH at $12.00 per DLH ...................................... 12.00
Variable manufacturing overhead, 1 DLH at $5.00 per DLH........ 5.00
Fixed manufacturing overhead, 1 DLH at $11.80 per DLH…..... 11.80
Standard cost per unit ................................................................. $42.00

During the year, the company produced 6,000 units of product and incurred the following costs:
Materials purchased, 24,000 yards at $4.80 per yard . . . . . $115,200
Materials used in production (in yards) . . . . . . . . . . . . . . . . ...18,500
Direct labor cost incurred, 5,800 hours at $13 per hour . . . ..$75,400
Variable manufacturing overhead cost incurred . . . . . . . . . ..$29,580
Fixed manufacturing overhead cost incurred . . . . . . . . . . . ...$60,400
Required:
1. Prepare an analysis of the variances for direct materials and direct labor for the year.
2. Prepare an analysis of the variances for variable and fixed overhead for the year.
3. What effect, if any, does the choice of a denominator activity level have on unit standard costs?
Is the volume variance a controllable variance from a spending point of view? Explain.