1. You are furnished with the following data.

RM Q Ksh. RM Q Ksh.

At 40 kg. 4 to 50 kg. 5

B 60 kg. 5 B 70 kg. 6

Input 100 kg. 120 kg.

Standard Loss 20 kg. Actual output

Output 80 (AY) = 90

Required:

Calculate the following Material Cost Variance, Material Usage Variance, Material Mix Variance and Material Yield Variance.(10 marks)

2. The following figures relate to AB Mills Ltd:

For the year 2015 - 2016Ksh.

Fixed Factory Overhead400, 000

Fixed Selling and Distribution Overheads200, 000

Variable Cost per unit12

Selling Price per unit20

Required:

Calculate the following:

i) Break- even point in units.(2 marks)

ii) Units to be sold to earn a target net income of Ksh5, 000 per month during a year.

(2 marks)

iii) Number of units to earn a net income of 25% on cost.(2 marks)

iv) Selling price per unit if break - even point is to be brought down by 15, 000 units.

(2 marks)

v) Selling price to earn a profit of 20% on sales by selling only 500, 000 units.(2 marks)