Question 5 (a) PJ Ltd manufactures hockey sticks. It sells the products at 500 each and...
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Question 5 (a) PJ Ltd manufactures hockey sticks. It sells the products at 500 each and makes a profit of ? 125 on each stick. The Company is producing 5,000 sticks annually by using 50% of its machinery capacity. The cost of each stick is as under: Direct Material Direct Wages 150 50 Works Overhead Selling Expenses The anticipation for the next year is that cost will go up as under: Fixed Charges Direct Wages Direct Material There will not be any change in selling price. There is an additional order for 2,000 sticks in the next year. Calculate the lowest price that can be quoted so that the Company can earn the same profit as it has earned in the current year? (10 Marks) 125 (50% fixed) *50 (25% variable) 60 per kg 260 kg of Material B @ 50 per kg The quantity processed was 680 kilograms of good product. From the above given information Calculate: (b) The standard cost of a chemical mixture is as follows: 60% of Material A @50 per kg 40% Material B@ 60 per kg A standard loss of 25% on output is expected in production. The cost records for a period has shown the following usage. 540 kg of Material A @ (i) Material Cost Variance (ii) Material Price Variance (ii) Material Usage Variance (iv) Material Mix Variance (v) Material Yield Variance. 10% 20% 5% (10 Marks) Question 5 (a) PJ Ltd manufactures hockey sticks. It sells the products at 500 each and makes a profit of ? 125 on each stick. The Company is producing 5,000 sticks annually by using 50% of its machinery capacity. The cost of each stick is as under: Direct Material Direct Wages 150 50 Works Overhead Selling Expenses The anticipation for the next year is that cost will go up as under: Fixed Charges Direct Wages Direct Material There will not be any change in selling price. There is an additional order for 2,000 sticks in the next year. Calculate the lowest price that can be quoted so that the Company can earn the same profit as it has earned in the current year? (10 Marks) 125 (50% fixed) *50 (25% variable) 60 per kg 260 kg of Material B @ 50 per kg The quantity processed was 680 kilograms of good product. From the above given information Calculate: (b) The standard cost of a chemical mixture is as follows: 60% of Material A @50 per kg 40% Material B@ 60 per kg A standard loss of 25% on output is expected in production. The cost records for a period has shown the following usage. 540 kg of Material A @ (i) Material Cost Variance (ii) Material Price Variance (ii) Material Usage Variance (iv) Material Mix Variance (v) Material Yield Variance. 10% 20% 5% (10 Marks)
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Finite Mathematics and Its Applications
ISBN: 978-0134768632
12th edition
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
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