MidtermSpring2011 Solution
UNIVERSITY OF TORONTO
RSM 222 H1S
MIDTERM EXAM, Winter 2011
Instructions:
DURATION:
AID ALLOWED:
1 hour 50 minutes
Non-programmable calculator. Programmable calculators have to be reset before the exam.
Total marks on the exam are 100 allocated as follows:
Section
I
Marks Achieved
9 Multiple Choice Questions
3 marks each for a total of 27 marks
II
Short Answer Questions
18 marks
III
Problem 1: Job Costing
13 Marks
Problem 2: Process Costing
12 marks
Problem 3: CVP Problem
15 marks
Problem 4: ABC Problem
15 marks
Totals
100 marks possible
Your Signature
First Name
Last Name (Printed)
Your Student Number (Printed)
Section I: 9 Multiple Choice Questions (3 marks each, 27 marks in total) :
Please circle the single best answer for the multiple-choice questions.
1. Which of the following items would be included as part of factory overhead in a microcomputer manufacturer?
a.
b.
c.
d.
e.
the cost of memory chips wage of computer assemblers depreciation of computer assemblers salary of marketing director all of the above
2. Inventoriable costs
a.
b.
c.
d.
e.
include only the prime costs of manufacturing a product. include only the conversion costs of manufacturing a product. are expensed when products become part of finished goods inventory. are regarded as assets before the products are sold.
None of the above.
3. Once the break-even point is reached
a.
b.
c.
d.
e.
The total contribution margin changes from negative to positive.
Net income will increase by the unit contribution margin for each item sold.
Variable costs will remain constant in total
The contribution margin ratio begins to decrease
None of the above
1
4. Miller manufactures desks. During the most productive month of the year, 3,500 desks are manufactured at a total cost of $84,400. In its slowest month, Miller makes 1,100 desks at a cost of $46,000. February is a regular month. Miller plans to make 2,000 units. What is the total variable costs for Fabruary?
a.
b.
c.
d.
e.
$60,400
RSM 222 H1S
MIDTERM EXAM, Winter 2011
Instructions:
DURATION:
AID ALLOWED:
1 hour 50 minutes
Non-programmable calculator. Programmable calculators have to be reset before the exam.
Total marks on the exam are 100 allocated as follows:
Section
I
Marks Achieved
9 Multiple Choice Questions
3 marks each for a total of 27 marks
II
Short Answer Questions
18 marks
III
Problem 1: Job Costing
13 Marks
Problem 2: Process Costing
12 marks
Problem 3: CVP Problem
15 marks
Problem 4: ABC Problem
15 marks
Totals
100 marks possible
Your Signature
First Name
Last Name (Printed)
Your Student Number (Printed)
Section I: 9 Multiple Choice Questions (3 marks each, 27 marks in total) :
Please circle the single best answer for the multiple-choice questions.
1. Which of the following items would be included as part of factory overhead in a microcomputer manufacturer?
a.
b.
c.
d.
e.
the cost of memory chips wage of computer assemblers depreciation of computer assemblers salary of marketing director all of the above
2. Inventoriable costs
a.
b.
c.
d.
e.
include only the prime costs of manufacturing a product. include only the conversion costs of manufacturing a product. are expensed when products become part of finished goods inventory. are regarded as assets before the products are sold.
None of the above.
3. Once the break-even point is reached
a.
b.
c.
d.
e.
The total contribution margin changes from negative to positive.
Net income will increase by the unit contribution margin for each item sold.
Variable costs will remain constant in total
The contribution margin ratio begins to decrease
None of the above
1
4. Miller manufactures desks. During the most productive month of the year, 3,500 desks are manufactured at a total cost of $84,400. In its slowest month, Miller makes 1,100 desks at a cost of $46,000. February is a regular month. Miller plans to make 2,000 units. What is the total variable costs for Fabruary?
a.
b.
c.
d.
e.
$60,400