## Tuesday, 9 May 2017

### DI QUIZ:BASED ON NEW PATTERN

Questions 1-6: The table below shows the estimated cost (in Rs. Lakh) of a project of laying a railway line between two places.

1. The total expenditure is required to be kept within Rs. 700 lakh by cutting the expenditure on administration equally in all the years. What will be the percentage cut for 1989?
(a) 22.6%
(b) 32.6%
(c) 42.5%
(d) 52.6%

2. If the length of line to be laid each year is in proportion to the estimated cost for material and labour, what fraction of the total length is proposed to be completed by the third year?
(a) 0.9
(b) 0.7
(c) 0.6
(d) 0.3

3. What is the approximate ratio of the total cost of materials for all the years to the total labour cost?
(a) 4 : 1
(b) 8 : 1
(c) 12:1
(d) 16 : 1

4. If the cost of materials rises by 5% each year from 1990 onwards, by how much will the estimated cost rise?
(a) Rs. 11.4 lakh
(b) Rs. 16.4 lakh
(c) Rs.21.4 lakh
(d) Rs.26.4 lakh

5. It is found at the end of 1990, that the entire amount estimated for the project has been spent. If for 1991, the actual amount spent was equal to that which was estimated, by what percent (approximately) has the actual expenditure exceeded the estimated expenditure?
(a) 39
(b) 29
(c) 19
(d) 9

6. After preparing the estimate, the provision for contingencies is felt inadequate and is therefore doubled. By what percent does the total estimate increase?
(a) 3.47
(b) 2.45
(c) 1.50

(d) 3.62

1. c The estimated total expenditure
= 52.1+267.5+196.4+209.5 = 725.5 lakhs.
If it has to be kept within 700 lakhs, the expenditures
have to be cut by 25.5 laks.
Cut in expenditure every year
= 25.5/4 = 6.375 lakhs.

Hence, percentage cut for 1989
= 6.375 / 15 × 100 = 42.5%.

2. b The estimated costs of material and labour for different
years are :
1988 = 2.1
1989 = 95+70+15+25+25 = 230
1990 = 80+45+12+18+20 = 175
1991 = 75+60+16+21+18 = 190
Required proportion
2.1 + 230 + 175/2.1 + 230 + 175 + 190 = 0.682

3. b Total material cost for all years
= (95+80+75+70+45+60+15+12+16+25+18+21) = 532
Total labour cost for all years = (2.1+25+20+18) = 65.1
Hence ratio = 532 : 65.1 ≈ 8 : 1

4. b In the given table we can see that the costs that can be taken under the head “Materials” are : Cement,
Steel, Bricks and Other building materials.
The estimated cost of these heads in 1990
= 80 + 45 + 12 + 18 = 155
The estimated cost of these heads in 1991
= 75 + 60 + 16 + 21 = 172
Since the cost of material rises by 5%, or would rise by 0.05X (155 + 172) = Rs.16.35 lakhs.

5. b Till 1990, actual amount spent = Rs.725.5 lakhs
Expenditure for 1991 as estimated = 209.5 lakhs.
Required percentage increase = 209.5/725.5 × 100 = 28.89%

6. a Total estimate = Rs. 725.5 lakh;
Estimate of contingencies = (1 + 15 + 4.2 + 5) = Rs.25.2 lakh.
Now as the estimate of contingencies is doubled, it increases by Rs.25.2 lakhs.
And hence the percentage increase in the total estimate is
25.2/725.5 ×100 = 3.47%.