LOVELY PROFESSIONAL UNIVERSITY Form/LPUO/AP-3

(The format to be used for Planning the academic activities other than
Lecturers/Tutorial/Practical like Assignments, Case study, Presentation, Quiz, Projects, Class tests,
industrial visits, teaching practice, court visits etc. to be undertaken as a part of the continuous assessment
for the Course)
ACADEMIC ACTIVITY NO: -1(HWMGT730-1)
Lovely School of Management Department of Managemant
Name of the faculty member: Sukhpreet Kaur
Course No: MGT730 Course Title: Current issues in business-II
Class: MBA Semester: 4 th
Section: S1906 Batch: 2011
Max. Marks: 20 Date of Allotment: 31-1-2011 Date of Submission: 20-2-2011
Important: To be read before filling up the Plan format.
1.Planning for academic activities other than Lecturers/Tutorial/Practical like Assignments, Case
study, Presentation, Quiz, Projects, Class tests, industrial visits, teaching practice, court visits etc
to be undertaken as a part of the continuous assessment for the Course should be prepared
separately as per the format at the start of the session.
2.Industry oriented academic activity should be encouraged. If the academic activity is organization
based, please specify the organization with respect to the assignment. Absolute theoretical
academic assignments, which involve only copying from the books, should be discouraged. Model
*(Method/Pedagogy) used in allotment and evaluation of the assignments should also be specified
in the assignment plans itself.
3.All the students should be given a different topic of assignment, in all cases either the topic of
assignment should be different or the organization on which the assignment is based should be
different.
S. Roll No To Objectives of Topic Event to be Model*
N pic Academic Activity planned
o No
.
All the Students will be able Prepare a report on Evaluation will
students to analyse the different social, political , be done on the
of the issues related to business, sports during basis of the
class business, sports, the period of allotment depth of the
politics and social and submission and topics and their
aspects on different prepare their analysis.
perspectives. perspective on these
issues.
Date: Sig. of Faculty member

Remarks by HOD (Mandatory)

#

Sig. of HOD with date

Remarks by HOS (Mandatory)

Sig. of HOS with date

HW1
Part-1
Q1: Mr. S owns a fleet of taxis and the following information is available from the
records maintained by him:
Number of taxis 10
Cost of each taxi Rs.54,600
Salary of manager Rs.700 p.m
Salary of accountant Rs.500 p.m
Salary of cleaner Rs.200 p.m
Salary of machanics Rs.400 p.m
Garage rent Rs.600 p.m
Insurance premium 5% P.a
Annual tax Rs.900 per taxi
Driver’s salary Rs.350 p.m per taxi
Annual repairs Rs.1,000 per taxi
Total life of taxi is about 2,00,000 Kms. A taxi runs, in all, 3,000 Kms, in a ,month and
30% 0f this distance has to be run without any passenger. Petrol consumption is one litre
for every 10 Kms @ Rs.4.41 per litre. Oil and other sundries are Rs.10.50 per 100 Kms.

Q2: H owns a taxi, a bus and a truck. The bus is 50 seater. The maximum capacity of the
truck is 10 tonnes. The taxi runs on an averages of 3000km. in a month out of which 40%
is normal running without fare. Variable cost of running the taxi is Rs.8 per km.
The truck and the bus run between Delhi and Jaipur, one way distance
being 300 km. The bus makes 25 round trips in a month and is generally 90% occupied.
Variable cost of running a bus is Rs.13.50 per km. The truck makes 20 round trips in a
month and is fully loaded on outward journey but only 90% loaded on return. Variable
cost of running a truck is Rs.9.50 per km.
You are required to calculate:
(a) Total variable cost per month and variable cost per effective km for the taxi;
(b) Total variable cost per month and variable cost per effective passenger-km for the bus;
(c) Total variable cost per month and variable cost per effective tonne-km for the truck.

Q3: A company runs a canteen for the benefit of employees and the employees are
catered here at subsidized rates through coupon sales. From the following information,
calculate the increase in subsidy per head this month over that in the same month last
year.
This month This month last year
Number of employees 4,000 3,500
Sales realization through 35,000 30,000
coupons(Rs.)
Materials consumed(Rs.) 30,000 25,000
Labour and 20,000 16,000
supervision(Rs.)
Overheads(Rs.) 29,000 24,000

Part-2
Q4: From the following particulars, prepare:
a)P&L a/c.
b)A statement showing the cost of manufacture, calculating factory expenses at
25% on prime cost and office overheads at 75% on factory expenses.
c)A statement reconciling the profits shown by the cost accounts with that shown
by P&L a/c. the selling price was fixed at cost plus 25%.

Stock 1st april,2000

Finished articles Rs.8,000
Raw material Rs.4,000
Stock on 31st march,2001
Raw material Rs.6,000
Finished articles Rs.2,000
Purchase of raw material Rs.24,000
Wages Rs.10,000
Sales Rs.65,000
Work expenses Rs.7,750
Office expenses Rs.6,100

Q5: The following is the trading and profit and loss account of a manufacturer for the
year ended 31st march, 2004:
Rs. Rs.
To opening stock: By closing stock:
Raw material 59,000 Raw material 64,000
Work in progress 25,600
To purchase of raw Bu cost of goods
material 3,73,000 manufactured 13,19,900
To wages 5,96,000
To factory 3,81,500
expenses
14,09,500 14,09,500
To cost of goods By sales(15,200 18,24,000
manufactured 13,19,900 units)
To administration By finished
expenses 2,45,000 stock(2,800 units) 2,35,200
To selling and By interest on 2,600
distribution investments
expenses 3,28,000
To preliminary By dividend
expenses w/off 20,000 received 11,000
To loss on sale of
fixed asset 15,000
To net profit 1,44,900
20,72,800 20,72,800

In cost accounts, factory overheads are allocated to production at 60% of direct labour
cost; administration overheads are applied at Rs.12 per unit over the units produced and
the selling and distribution overheads are charged so as to work out 20% of the selling
price.
You are required to:
i)prepare a statement of cost and ascertain the profits as per cost accounts.
ii)Prepare a statement reconciling the profits and losses as per two accounts.

Q6: A company maintains separate cost and financial accounts, the costing profit for
2001 differed to that revealed in the financial accounts, which was shown as Rs.50,000.
 Cost accounts Financial accounts
Opening stock of raw 5,000 5,500
material
Closing stock of raw 4,000 5,300
material
Opening stock of finished 12,000 15,000
goods
Closing stock of finished 14,000 16,000
goods

dividend of Rs.1,000 was received by the company.

A machine with a net book value of Rs.10,000 was sold during the year for Rs.8,000
The company charged 10% interest on its operating capital employed of Rs.80,000 to its
process costs.

You are required to determine the profit figure which was shown in the cost accounts.