Budgetary Control – Numerical

1. Budgeted sales of X for March are 18000 units. At the end of the production process for X,10% of production units are scrapped as defective.Opening inventories of X for March are budgeted to be 15000 units and closing inventories will be 11,400 units. All inventories of finished goods must have successfully passed the quality control check. The production budget for X for March, in units is:
   (a) 12,960
   (b) 14,400
   (c) 15,840
   (d) 16,000
2. CG Co manufactures a single product T. Budgeted production output of product T during June is 200 units. Each unit of product T requires 6 labour hours for completion and CG Co anticipates 20 percent idle time. Labour is paid at a rate of Rs. 7 per hour. The direct labour cost budget for March is
   (a) Rs 6,720
   (b) 8,400
   (c) 10,080
   (d) 10,500
3. The actual output of 162,500 units and actual fixed costs of Rs. 87000 were exactly as budgeted. However, the actual expenditure of Rs 300,000 was Rs. 18,000 over budget. What was the budget variable cost per unit?
   (a) Rs 1.20
   (b) Rs 1.31
   (c) Rs 1.42
   (d) Rs 1.50
4. CA Co manufactures a single product and has drawn up the following flexed budget for the year.
   

   	60%	70%	80%
   	Rs.	Rs.	Rs.
   Direct materials	120,000	140,000	160,000
   Direct labour	90,000	105,000	120,000
   Production overheads	54,000	58,000	62,000
   Other overheads	40,000	40,000	40,000
   Total Cost	304,000	343,000	382,000

   What would be the total cost in a budget that is prepared at the 77% level of activity?
   (a) Rs. 330,300
   (b) Rs. 370,300
   (c) Rs. 373,300
   (d) Rs. 377,300

5. A factory is presently working at 50% capacity and producing 4,000 units. The cost data are as follows :
   Material and labour cost per unit Rs.15, Factory overheads (40% variable) Rs.30,000. What will be the works cost for 60% capacity ?
   (a) Rs.1,04,400
   (b) Rs.1,12,400
   (c) Rs.1,18,600
   (d) Rs.1,22,200