Reference no: EM132569303

Problem 1: The budgeted per unit cost data of a toy manufacturing company is: Material- Rs 18; Labour- Rs 9; Variable cost- Rs 8; Selling price- Rs 50. The budgeted production and sales is 1,50,000 units. Fixed overhead incurred is Rs 4,00,000. The total profit if price is decreased by 25% and volume of sales increase by 30% is:

a) Rs 87,500

b) Rs 42,900

c) Rs 55,600

d) Rs 61,900

Problem 2: Tanu Ltd. uses predetermined overhead rate of Rs. 15 per labour hour, the actual overhead cost is Rs. 85,000 and actual labor hour are 5,750. The under or over absorption of overhead is:

a) Rs 1,250 (over)

b) Rs 1,250 (under)

c) Rs 1,000 (over)

d) Rs 1,000 (under)

Problem 3: The budgeted cost of electricity is Rs 62,500 for 5000 units of production per month and Rs 71,500 for 6,200 units of production per month. If the company manufactures 6,900 units in the month of May 2003, the budgeted amount of electricity for the month is:

a) Rs 74,360

b) Rs 76,750

c) Rs 77,770

d) Rs 79,572