1) If semivariable cost at 60% level of production is Rs 40,000 and at 80% level is Rs 44,000. What will it be at 100% level of production?
a. Rs 40,000
b. Rs 42,000
c. Rs 44,000
d. Rs 48,000
Answer
Explanation

ANSWER: Rs 48,000
Explanation: No explanation is available for this question!


2) The cost of material at 50% capacity is Rs 8,000 and budget is to be prepared at 60%, 90% and 100% of normal capacity. The cost of material at 60% and 90% capacity will be
a. Rs 9600 and Rs 14,400
b. Rs 14,400 and Rs 16,000
c. Rs 9600 and Rs 16,000
d. None of the above
Answer
Explanation

ANSWER: Rs 9600 and Rs 14,400
Explanation: No explanation is available for this question!


3) Production at 60% capacity 600 units, Materials cost Rs 100 per unit, Labour at Rs 40 per unit and expenses at Rs 10 per unit. Factory expenses are Rs 40,000 (Fixed 40%) and Administration expenses Rs 30,000 (Fixed 60%). What is cost per unit at 60% and 80% capacity?
a. Rs 266.67 and Rs 252.50
b. Rs 252.50 and Rs 244
c. Rs 266.67 and Rs 244
d. None of the above
Answer
Explanation

ANSWER: Rs 266.67 and Rs 252.50
Explanation: No explanation is available for this question!


4) If variable and fixed costs at 60% capacity are Rs 12,000 and Rs 9,000 respectively, total cost at 80% capacity will be
a. Rs 25,000
b. Rs 28,000
c. Rs 24,000
d. None of the above
Answer
Explanation

ANSWER: Rs 25,000
Explanation: No explanation is available for this question!


5) If indirect material at 80% capacity (800 units) is Rs 248, of which variable component is Rs 0.06 per unit, then the amount of indirect material at 100% capacity would be
a. Rs 260
b. Rs 600
c. Rs 310
d. None of the above
Answer
Explanation

ANSWER: Rs 260
Explanation: No explanation is available for this question!


6) At 50% capacity expenses are Rs 10,000, which increase by 10% between 60% and 80% level of activity and 20% thereafter. These are
a. Variable expenses
b. Semivariable expenses
c. Both a and b
d. None of the above
Answer
Explanation

ANSWER: Semivariable expenses
Explanation: No explanation is available for this question!


7) While preparing a flexible budget, direct material, direct labour and direct expenses all are placed under the head of variable cost.
a. True
b. False
Answer
Explanation

ANSWER: True
Explanation: No explanation is available for this question!


8) Semivariable cost will not be zero, even if production is nil.
a. True
b. False
Answer
Explanation

ANSWER: True
Explanation: No explanation is available for this question!


9) The total costs at 60% and 70% of activity are Rs 28,290 and Rs 30,348 respectively. Production at 60% level is 720 units and selling price is Rs 38 per unit. Determine Profit and Loss at 80% activity level.
a. Rs 6,576
b. Rs 4,074
c. Rs 9,078
d. None of the above
Answer
Explanation

ANSWER: Rs 4,074
Explanation: No explanation is available for this question!


10) Semivariable expenses increases with the increase in the level of activity,
a. In the same proportion as the activity increases
b. Not in the same proportion as the activity increases
c. In inverse proportion of activity increase
d. None of the above
Answer
Explanation

ANSWER: In the same proportion as the activity increases
Explanation: No explanation is available for this question!

