MGT402 Finalterm Current Paper 2013 File 2 Shared by Masood Khan

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MGT402
Mostly MCQS from Old Papers 52
Question

IF 5 Mrks

Company’s sales forecast for 3rd quarter, ending September 30, was 54,300 units.
The beginning inventory was 13,000 units.
Ending inventory was 12,200 units.

Then:

Prepare production budget for 3rd quarter?

Question
5 Mrks

Liberty Pizzas delivers their product to the housing societies near Gulberg. The company's annual fixed costs are Rs. 400,000. The sales price of a normal size pizza is Rs. 100 and the cost to make and deliver each pizza is Rs. 60.
You are required to calculate the following:

1. Break even sales per unit.
How many Pizzas the company must be sold in order to earn a profit of Rs. 650,000

Question
3 Mrks
The following data of an electronic company for the month of August is given:

Plant capacity	4,000 units per month
Fixed Cost	Rs. 5,000
Variable cost	Rs. 3.00 / unit
Sales price	Rs. 5.00 / unit

Required: Break Even point in Units and Rs

Question 5 Mrks

The Regal, Inc. makes 35,000 motors to be used in the production of its sewing machines. The cost per motor at this level of activity would be:

Particular	Rs.
Direct materials	4.50
Direct labor	4.60
Variable factory overhead	3.75
Fixed factory overhead	3.45

An outside supplier recently began producing a comparable motor for the sewing machine. The price to Regal for this motor is Rs. 15. If Regal decided not to make the motors, there would be no other use for the production facilities.

Required: If Regal decides to continue making the motor, how much higher or lower would net income be than if the motors are purchased from the outside supplier?

Question

Bazar Company is a small family business that produces wooden plaques and
Trophies: 5 Marks

	Plaques (Rs.)	Trophies (Rs.)
Selling price per unit	18	15
Les: Variable cost per unit	12	8
Contribution margin per unit	6	7
Contribution margin ratio	33%	47%

In producing the items the primary bottleneck is due to the fact the company only has one machine, a sander, to sand the wood that is used for the plaques or the trophies. Generally, the wood required for each plaque takes 0.25 hour to sand, while the word required for each trophy takes 0.50 hour to sand. Based on the constraint related to the machine time, which product should be emphasized if only limited machine time is available?
Question
3 Marks
Suppose a trader of an agriculture product has fifty thousand to invest. Different avenues of investment are available to him are as under:
Alternative # 1
Investment in the purchase seeds, expected return is Rs. 150,000.
Alternative # 2
Investment in purchase of fertilizers, expected return is Rs. 100,000
Alternative # 3
Lend out money to a friend; expected return is Rs.50, 000

Required:
Keep in view the given data calculate/identify the following:

Opportunity cost
Opportunity loss

Question

The following detail is related to Bloch Company. 3

Opening work-in-process	2,000 liters (100% completed to material and 40% as to conversion cost)
Units put into process	24,000 liters
Closing work-in-process	3,000 liters (100% completed to material and 45% as to conversion cost)

Required:
Find out the numbers of completed units and equivalent production units as to material and conversion cost using weighted average method.

Question

The Carter Manufacturing Company estimates its production requirements to be 30,000 units for October, 38,000 units for November and 41,000 units for December. It takes 3 direct labor hours at a rate of Rs. 3 per hour to complete one unit.
Prepare direct Labor budget cost for the last quarter of the year