1(d) Life Cycle Costing - Effect of Price Reduction Page 10.6, Illustration 5 RTP 2(a) Transportation - IBFS by VAM Page 17.5, Illustration 1, 2 M 12, M 15+ various exams 2(6) Network Analysis - PERT Computations Page 19.20, Tllustrations 11,12,13,14 N 05, N 09,M 10, N 13, N 14 3(0) ABC - Traditional vs ABC - Cost Statement Page 8.16, Illustration 5 M 09 3(b) Simulation Page 21.12, Illustration 12 M 12 Marginal Costing - Evaluation of Export Order Various Past Exam Ons in Chapter 2 on Various Past 4(a) - Profitability Analysis Profitability Analysis Exams 4(0) Service Sector - Budgeting See Chapter 6 on Hospitality Services 5(a) Standard Costing - Sales, Material and FOH Various Past Exam Ons in Chapter 1 on Various Past Variances Sales, Material and FOH Variances Exams 5(b) Budgeting - Sales and Production Budgets Page 7.17, Illustration 9 M04 6(a) Transfer Pricing - Interntni Pricing Tax Rates Page 5.41, Q.No.25 6(b) Pricing - Export/Incremental Order - Profit Page 3.37, Q.No.25 RTP, M12 Statement - Acceptance Decision Page 3.10, Q.No.29,30,31 7(a) Pricing - Theory [Past Exams: RTP, N 93, M 95, M 96, M Various Past 98, M 99, M01, M 02 M 03, N 04, N 06, N Exams 08, M 09, N 09, M 10, M 16, N 16] 7(6) Lincar Programming - Theory Page 18.4, Q.No. 11 M 85 760) Relevant Costing - Theory Principles of Relevant Cost In Chapter 4 RTP, N 13, M 14, and Page 4.7-4.9, Ons 22-27 N 15, N 16 7(0) Assignment - Theory Page 16.1, Q.No.1 M 10 70) TOM-COO Classification - Theory Page 11.5, Q.No.9, 10, 11 N 11, N15 1 Question 1(a): Marginal Costing - Key Factor - Production Decision 5 Marks AB Company produces three products X, Y and Z by using indigenous and imported Raw Materials. The relevant information available from the records of the Company is as under: Particulars Product X Product Y Product Z Selling Price in per unit 425 380 500 Direct Materials in per unit 180 160 190 Direct Labour @ 40 per hour 100 80 120 Variable Overheads P 12 per Labour Hour 30 24 36 Maximum Sales Potential (in units) 1,500 2,500 2,500 The Company also has an agreement to supply 1,000 units of Product X to a Vendor which has to be executed. Out of Direct Materials, 60% is imported Raw Material and it is purchased at 24 per kg Prepare a statement showing Contribution of these three products assuming availability of Imported Raw Materials is restricted to 24.000 kgs per year