Q-No. 5(A) 5(B) 219 Questions 257 Duro Scientific Instrument Company estimated its factory overhead for the year as Rs. 450.000 fixed plus a variable rate of Rs.25 per direct labor hour Factory overhead absorption rate calculated by the cost accountant is Rs.55 per direct labor hour. During the year the factory worked for 18,000 hours and actual factory overhead incurred were Rs. 936,000. Required: i) Budgeted Variance. ii) Spending Variance. iii) Idle Capacity Variance. The Omar Equipment Company estimates its carrying cost at 15% and it's ordering cost at Rs 9.00 per order. The estimated annual requirement is 48,000 units at a price of Rs 4.00 per unit. Required: a) What is the most economical number of units to order? b) About how often will an order need to be placed. 6 (A) ABC Textile Private Ltd. presents the following information for the month of March 2020. Material purchased during March Rs 110,000 FOH was 50% of direct labor cost. Inventories were as follows. Cost of goods sold for March Rs 345.000 Particulars. Finished Goods Rs 102.000 Beginning Ending Rs 105.000 Work in Process Material Rs 40,000. Rs 36,000 Rs 20.000 Rs 26.000 Required: i) Prepare a schedule of cost of goods manufactured. ii) Compute the prime cost charged to work in process. iii) Compute the conversion cost charge to work in process. 6 (B) The Following Data is available for the Company A at end of their fiscal year: Required: Company Name Company 'A' Particulars Amount (Rs) Finished goods inventory, Jan 1 600.000 4.800.000 4.500.000 Cost of goods manufactured Sales Gross Profit on sales Finished goods inventory. Dec 31 Compute the Amount indicated by the Question Mark? 25%