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Manac Quiz 1
Manac Quiz 1
(Finance Area Core Course for BM Juniors (JSR), Term ll, AY-
2022-23)
TEST NUMBERI (An Open Book Examination)
Weightage =15%,Total Marks=15, Duration=45 Minutes
The Instructions
In respect of
this question paper, a separate answer bookldet has been provided and you have to
provide your answers in the structured format in that answer
given
would be circulated under
as
booklet. No additional sheets
any circumstances whatsoever. In case you need additional
workings etc, you may use the reverse sides of that answer booklet. Please do not space for doing
full name and your roll number in the spaces provided in that answer booklet. forget to write your
The concerned faculiy
will only evaluate those answer scripts which are handwritten (very important).
your answers, You are required to answer both questions. Students would certainlyHence. do n0!tofype
be allowed use
calculators while writing this exam. Moreover, students may refer
other exercise books, laptops
to books, handouts, class notes,
(where they might have saved some class notes, excel files etc.) while
writing this examination.
However, it may please be noted that students are not allowed to do the
this examination (very important). following while writing
A) Accessing (or using) the internet
B) Using their mobile phones
C) Talking to or discussing with other student (s).
Incase, it is observed that any student has resorted to any of the forbidden practices (as clearly
mentioned above), he / she would be awarded ZERO mark in this examination.
(onare reguired io provide your auswers in theauswerbookletin the structured forut as given
SENGOLimited requires a particular couponent "A which is titted inside one ot their products
(nanely produet SEN) which is sold in plenty in the market at the rate of Rs 4000 per unit earming
substantial profits. The company may procure "A" from an outside ageney at Rs 1000 per unit. "A"
may be nmanufactured in-louse attracting 10 direct labour hours (per unit) hourly rate being Rs 50 and
dieet material cost amounts to Rs 400 per unit. Morcover, the company follows the practice of loading
fixed overhcads incurred at various administrative departments to the tune of Rs 300 per unit while
computing the mamufacturing cost of A Four years ago the company had also bought a special
machine costing Rs 2.50 Lakhs (useful life being S years) exclusively for manufacturing "A" because
the company thought (ut thattime) that they may possibly decide to manufacture "A in-house. This
machine cannot be resold or used elsewhero and hence, if the company finally decides to procure A
from the outside ageney the company will have to write off the entire book valuc of this particular
machine amounting to Rs 0.50 Lakhs (computed as cost less four years depreciation charge) in the
current year itself. Ii case "A is not manufactured in-house, the direct labour hours released in the
proccss will be definitely utilized increasing the production of another product manufactured by the
sume company, nanely, product GO which is sold in plenty in the market for Rs 1500 per unit.
Product GO is manulactured by the company attracting 15 direct labour hours (per unit) hourly rate
being Rs 50 and direct material cost amounts to Rs 550 per unit. The concened company is currently
not in a position to recruit new labourers. Moreover, the
company follows the practice of
overheads incurred at various administrative departments to the tune of Rs 250 perloading
fixed
unit while
computing tlhe manufacturing cost of product G0. It may also be noted that more than sutticient
market demand exists for both the products, SEN and GO.
The concerned company is wondering wlhether it would be a wise deeision to nanutacur component
"A"in-house or procure the same from outside agency.
Based on the above information, you are required to answer the specific questions given in the
answer booklet in the
structured format as given.