MGMT 20100 Practice Midterm Exam I

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Purdue University
Krannert School of Management

MGMT 201 – Managerial Accounting I
Spring 2015
Practice Midterm Exam
This practice exam consists of 30 multiple choice questions on 11 pages (including this cover page).
Answer all questions.
No partial credit is available for multiple choice questions. Be sure to put your answers to the multiple choice questions on your Scantron form.
The exam is closed book. A basic four function calculator is permitted.
GOOD LUCK.

Please circle the best answer and fill-in the corresponding circle on your Scantron sheet.
Only answers on the Scantron will be scored.
1.

Managerial accounting:
a. is unregulated.
b. produces information that is useful only for manufacturing organizations.
c. is based exclusively on historical data.
d. is regulated by the Securities and Exchange Commission (SEC).

2.

The accounting records of Dolphin Company revealed the following information:

Dolphin's cost of goods sold is:
a. $508,000.
b. $529,000.
c. $531,000.
d. $553,000.
3.

Costs that are expensed when incurred are called:
a. product costs.
b. direct costs.
c. inventoriable costs.
d. period costs.

4.
When 5,000 units are produced variable costs are $35 per unit and total costs are
$200,000. What are the total costs when 8,000 units are produced?
a. $200,000.
b. $305,000.
c. $240,000.
d. Cannot be determined from the information given.

MGMT 201 Practice Midterm Exam—Page 2

5. rate? Which of the following is the correct method to calculate a predetermined overhead
a. Budgeted total manufacturing cost ÷ budgeted amount of cost driver.
b. Budgeted overhead cost ÷ budgeted amount of cost driver.
c. Budgeted amount of cost driver ÷ budgeted overhead cost.
d. Actual overhead cost ÷ budgeted amount of cost driver.

6.
Armada Company applies manufacturing overhead by using a predetermined rate of
150% of direct labor