# Diploma Process Planning & Cost Estimation Important Questions Unit – 4

## Diploma Process Planning & Cost Estimation Important Questions

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Here We attached the Process Planning & Cost Estimation Important Questions for the unit  4, from Board Exam Question Bank

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UNIT –  4, Cost Estimation.           Scheme : M Subject : Process Planning & Cost Estimation

NOTE :

1. The highlighted Questions are asked more than two times in the Board Exam

1. These Questions are collected from Board Examination Question Papers.

2/3 Marks

1. Define cost estimation
2. Define performance factor.
3. What is the purpose of cost estimating?
4. Write the relationship between setup time and economic lot size.
5. Name the various constituents of cost.
6. What do you mean by inspection time?
7. What data are required for making a cost estimate?
8. Name the various methods by which the overheads can be estimated .
9. Define setup time
10. Explain performance factor.
11. How labour cost is estimated?
12. What is the purpose of cost accounting?
13. The monthly requirement of a company is 4000 components. The cost of each part is Rs. 12 and the cost of each setup is Rs. 60 per lot. If the carrying charge factor is 20% determine (i) Economic lot size and (ii) set up time for each lot.

10 marks questions

1. From the following data, calculate the total cost and selling price for a job. Direct material = Rs. 5500, manufacturing wages = Rs. 3000, Factory over heads to manufacturing wages= 100%, non-manufacturing overheads to factory cost = 15% and profit on total cost = 12%
2. 40 forging are to be machined in four steps. Calculate the cost of production with the help of following:

Machining time= 12 min per forging

Non machining time = 21 min per forging

Set up time = 45 min per setup

Tool sharpening = 5 min per forging

Fatigue = 20%

Personal needs = 5%

Total change time = 10 min

Tool life = 8 hrs

Checking time = 15 sec with 5 checks per forging

Performance factor = 1.4

Direct labour cost = Rs. 5 per hour.

1. Estimate the sales price to be quoted for the product from the following given data.

Direct material cost per piece = Rs. 14.

Direct Labour Cost per Piece = Rs. 18

Factory over head = 100% of prime cost.

General overhead = 25% of factory cost.

Profit = 10% of total cost.

1. An electric immersion rod is being sold in the market for Rs. 65. Find its production or manufacturing cost assuming 20% profit on the selling price and selling expenses to be 40% of production cost. If the cost of material used for the rod is Rs. 15 and overheads of the department in which it is being is 40% of labour cost. Find the time taken for its manufacture, if the labour rate is Rs. 2 per hour.
2. Explain with a block diagram about how the selling price of a product is arrived at.
3. 40 castings are to be machined in 5 setups. Calculate the cost of production with the help of the following given data.

Machining time = 10 min / casting

Non – machining time = 20 min / casting.

Set up time = 45min / setup

Tool sharpening = 5 min/casting

Fatigue allowance = 20%

Personal needs allowance = 10%

Total change time = 12 min

Tool life = 8 hrs

Checking time = 15 sec with 5 checks / casting.

Performance factor = 1.5

Direct labour cost = Rs. 8 hours.

1. Explain the basic steps in making a cost estimate
2. A certain piece of work is produced by a firm in batches of 100. The direct materials cost for that 100 piece work is Rs. 160 and the direct labour costs is Rs. 200. Factory on cost is 35% of the total material and labour cost. Over head charges are 20% of the factory cost. If the management wants to make a profit  of 10 % on the gross cost. Determine the selling price of each article