Contract Costing IPCC

Q37. A contractor has entered into a long term contract at an agreed price of175000 subject to an escalation clause for materials and wages as spelt out in the contract and corresponding actuals are as follows:

Materials               SQ(UNITS)         SP(RS.)           Actual Oty        AP(Rs.)

A                             5000                       5                         5050              4.80 

B                             3500                       8                          3450                7.90  

C                            2500                        6                         2600                 6.60 





LABOUR                  STd HOURS       HOURLY RATE     ACTUAL HOUR   HOURLY RATE

X                                      2000                                  7                         2100                      7.20

Y                                     2500                            7.50                          2450                      7.50

Z                                     3000                             6.50                       3000                        6.60





Reckoning the full actual consumption of materials and wages the company has claimed a final price of177360. Give your analysis of admissible ecalation claim and indicate the final price payable.

Please Help Me Out!!!!!!!!!!!

Replies (5)

the question u asked is of ICWA Final, 1984. never asked again not in icwa or in ca.  I am attaching the answer in world 97-2003 compatible mode world format file.

the above information is best of my knowledge. if I miss something important matter then sorry.

Statemnt showing the Amissible Escalation Claim

Material price varianc to be claimed        Wages Rate Variance to be claimed

= SQ X (AP-SP)                                               = SH X (AR-SR)

FOR A = 5,000(4.8 - 5)      =   - 1,000        FOR X   =  2,000(7.2 -7)           =  400

FOR B = 3,500(7.9 - 8)      =   -     350       FOR Y   =   2,500(7.5 -7.5)       =       0

FOR C = 2,500(6.6 - 6)      =      1,500       FOR Z   =   3,000(6.6 -6.5)       =   300

                                                     ------------                                            -------------

                                               =          150                                                   =   700

                                                      ------------                                          -------------

 

Total Admissible scalation claim   =150 + 700        =   850

 Statement showing the Final Claim

Claim for material = SQ X SP                Claim for labour  = SH X SR

FOR A = 5,000 X  5    =    25,000           FOR X  = 2,000  X7          =      14,000                                      

FOR B = 3,500 X  8    =    28,000           FOR Y =  2,500  X7.5       =     18,750                

FOR C = 2,500 X6    =    15,000             FOR Z =  3,000  X6.5       =     19,500

                                    ----------------                                                 ----------------

                                     =    68,000                                                  =      52,250

                                    ----------------                                                -----------------

Contract price(as originally agreed) (Rs. 68,000 + 52,250)      = 1,20,250

Add: Total Admissible escalation claim (Rs. 150 + 700)           =          850

                                                                                                     --------------------

                                                                                                          1,21,100

                                                                                                     ---------------------

                           

thank you yaar very much

Originally posted by : Kanahaiya

thank you yaar very much

did you match the answers plz reply

hey, can u pls let me knw which solution is correct?

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