Attempt any five of the following questions:
(a) Define cost accounting
(b) What is the difference between traditional costing and activity based costing?
(c) List out the steps involved in labour cost control. . .
(d) What do you mean by over absorption of overheads?
(e) Briefly explain the method of calculating profit on cost price and selling price
(f) How work in progress is shown in contract account and balance sheet?
(g) Give five expenditures items which are not shown in cost accounts.
(h) Differentiate between joint products and By-products with examples.
(a) A worker completes a job in a certain number of hours. The standard time allowed for the job is 12 hours and the hourly rate of wages is Rs. 5 per hour. The worker earns, at the rate of 50%, a bonus of Rs. 7.5 under Halsey Plan.
Ascertain the total earnings of the worker under Rowan Premium Plan. Also calculate the effective rate of earning per hour.
(b) Calculate Machine Hour Rate from the following:
Cost of Machine Rs. 1,30,000
Installation Charges Rs 20,000
WorkingLife 10 years
Working Hours 1,500 per year
Repairing Charges 40% of Depreciation
Power 10 units per hour @ Rs. 0.10 per unit
Lubricating oil Rs. 6 per day of 8 hours.
Consumable store Rs. 10 per day of 8 hours
Wages of Operator Rs. 4 per day.
Machine Insurance 40% of Depreciation.