UGC NET/JRF EXAM, (MANAGEMENT) December 2019

Total Questions: 100

91. Based on the information given below, answer the questions which follow.

Kruger Corporation has recently implemented a standard cost system. The management has obtained the following information for variance analysis:

(a) Standard cost information :

Standard cost information
Direct materialsRs. 5 per kg.
Quantity standard per unit= 100 kg per unit
Direct labour rateRs. 20 per hour
Hours allowed per unit= 2 hours per unit
Fixed overhead budget= Rs. 12,000 per month
Normal level of production= 1,200 units
Fixed overhead application rate= Rs. 10 per unit
Variable overhead application rate= Rs. 2 per unit
Total overhead application rate= Rs. 12 per unit

(b) Actual cost information :

Actual cost information
Cost of material purchased and consumed= Rs. 4,68,000
Quantity of material purchased and consumed= 1,04,000 kg.
Cost of direct labour= Rs. 46,480
Hours of direct labour= 2240 Hrs
Cost of variable overhead= Rs. 2,352
Cost of fixed overhead= Rs. 12,850
Volume of production= 1000 units

What is the direct materials price variance, given an actual price of Rs. 4.50 per kg?

Correct Answer: (d) Rs. 52,000 unfavorable
Solution:

92. What is the material quantity variance?

Correct Answer: (b) Rs. 20,000 unfavourable
Solution:

93. What is the labour efficiency variance?

Correct Answer: (a) Rs. 4,800 unfavourable
Solution:LEV = (SH - AH) × SR
= (2×1,000 – 2,240) × 20
= (2,000 -2,240) × 20
= (- 240) × 20
= (-4,800)

94. Obtain the overhead spending variance.

Correct Answer: (b) Rs. 1,202 unfavourable
Solution:

Actual overheads (fixed + variable) = 12,850 + 2,352
                 = 15,202

Standard overheads (fixed + variable)
                   = 12,000 + 1,000 × 2
                 = 14,000

Overhead spending variance = 15,202 – 14,000
                 = 1,202 unfavourable

95. What is the overhead volume variance?

Correct Answer: (d) Rs. 2,000 unfavourable
Solution:Overhead volume variance
= (Actual unit – Expected unit) × standard fixed overhead rate.
= (1000-1200)×10
= (-200 × 10)
= ₹ 2,000 (Unfavorable)

96. Read the passage and attempt the questions that follow:

Dinesh, a young executive, joined Softech Co. three months back. Coming with a brilliant academic record he played key role to revamp the company's finance and management procedures for which he was recognized by the management.

But now his performance has come down with mistakes found in most of his actions. Several things transpired against him. His only son turned spastic and he was overlooked for promotion against a new comer.

This witnessed him becoming less popular among staff. Adding to that, a mild flirtation with a female employeе was blown out of proportion. Dinesh has became emotionally and professionally depressed with morale down and seemed loosing selfconfidence badly.

As HR Manager which life positions in Transactional Analysis would you expect Dinesh to have?

Correct Answer: (a) I'm Ok, You are Ok
Solution:"I am ok, You are ok"- This life position shows that an individual has several O.K. experiences with others. This means an individual encountered no severe problems or issues with others in his childhood and had a normal relationship with them.

People with such life positions about therselves and others around him can solve any problem very easily and realizes the significance of others being in his life. This position is based on the adult ego.

97. Which type of promotion policy would you recommend to Softech Co.?

(a) Career ladder
(b) Merit Based
(c) Accretion of duties
(d) Competitive and non-competitive

Choose the correct option from the following

Correct Answer: (b) (b) and (c)
Solution:I will recommend merit based, accretion of duties of promotion policy to softech co. In merit based, an employee is promoted on the basis of excellent and superior performance in the current job. In Accretion of duties non-completion promotion of employees is done.

98. As HR Manager, which counseling mode would you choose for Dinesh?

Correct Answer: (a) Developmental mode
Solution:Counselling is a therapeutic process of providing help and support to people to face and sail through difficult times in life. It helps people to see things from a different viewpoint and encourage them to draft their action plans.

Developmental counseling modes-
- Face-to-face communication.
-Conducted by in immediate supervisor.
- Starts with a verbal discussion.
- Ends with draft plan of action.
- First action step.

99. The HR Manager should impart which of the following skills to Dinesh?

Correct Answer: (b) Peoples skills
Solution:The HR Manager should impart peoples skills to Dinesh. People skills are patterns of behavior and behavioral interactions.

100. Which management approach should the HR Manager deploy for Dinesh here?

Correct Answer: (d) Interactionalism Approach
Solution:Interactionalism is a relatively new approach to understanding behavior in organisational settings. First presented in terms of interactional psychology,

the view assumes that individual behavior results from a continuous and multidirectional interaction between characteristics of the person and of the situation.

More specifically interactionlism attempts to explain how people select, interpret and change various situations. Here, the HR Manager deploy Interactionalism management Approach for Dinesh.