MGT402 Current Midterm Paper Fall 2013 Shared by amikhan File 1

Following is the information of ABC manufacturing concern:

Wage rate per hour                                         Rs. 3.50

Time allowed for the job                                  21 hours

Time taken                                                        19 hours

Required:

1. Calculate the Gross earnings of the worker under Halsey premium plan.

2. Find out effective “rate of earnings

Classification of cost and Allocation\Distribution of cost are very important concepts used in cost and management accounting. You are required to differentiate these two cost concepts in detail.
Predetermined factory overhead rate computed by Al-Habib Industries is Rs. 11 per machine hour. Budgeted factory overhead for activity level of 150,000 machine hours is Rs. 500,000 and for activity level of 100,000 machine hours is Rs. 250,000. Budgeted fixed factory overhead and Budgeted variable factory overhead are Rs. 500,000 and Rs. 200,000 respectively.

Required:

Compute the “Budgeted activity level on which the absorption rate is based”.

Note: it is necessary to show complete working