RSM222 Midterm
1. Which of the following companies would be most likely to use a job-order costing system rather than a process costing system?
I. Shipbuilding
II. Crude oil refining
2. At the end of a period, after overhead has been applied to all jobs, manufacturing overhead has a credit balance of $900. We say that overhead is:
a. Correctly applied
b. Overapplied
c. Underapplied
d. None of the above
3. Using the variable costing method, which of the following costs are assigned to inventory?
a. Variable factory overhead costs and variable selling and admin costs
b. Variable factory overhead costs
c. Variable selling and admin costs
d. Neither
4. Which of the following statements is true?
I. When completed units are sold, work in process inventory account is credited
II. The journal entry required to record indirect labour costs includes a debit to factory overhead account
5. Which of the following statements is true?
a. Beginning finished goods inventory appears on the COG manufactured schedule
b. In some cases, under applied overhead is closed out to cost of goods sold
c. A and B
d. Neither
6. Which of the following best describes the function of managerial accounting within an organization?
a. It has its primary emphasis on the future
b. It is required by regulatory bodies such as the Ontario Securities Commission
c. It focuses on the organization as a whole, rather than on the organization’s segments
d. It places more emphasis on precision of data than financial accounting does
1. What are fixed costs, if contribution margin is positive and breakeven is one unit? Using this cost structure, what is the operating leverage if they sell 2 units?
2. Abel Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 200 units and of Product B is 300 units. Selling price for A is $160/unit and B is $100/unit. There are two activity cost pools, with estimated total costs and expected
I. Shipbuilding
II. Crude oil refining
2. At the end of a period, after overhead has been applied to all jobs, manufacturing overhead has a credit balance of $900. We say that overhead is:
a. Correctly applied
b. Overapplied
c. Underapplied
d. None of the above
3. Using the variable costing method, which of the following costs are assigned to inventory?
a. Variable factory overhead costs and variable selling and admin costs
b. Variable factory overhead costs
c. Variable selling and admin costs
d. Neither
4. Which of the following statements is true?
I. When completed units are sold, work in process inventory account is credited
II. The journal entry required to record indirect labour costs includes a debit to factory overhead account
5. Which of the following statements is true?
a. Beginning finished goods inventory appears on the COG manufactured schedule
b. In some cases, under applied overhead is closed out to cost of goods sold
c. A and B
d. Neither
6. Which of the following best describes the function of managerial accounting within an organization?
a. It has its primary emphasis on the future
b. It is required by regulatory bodies such as the Ontario Securities Commission
c. It focuses on the organization as a whole, rather than on the organization’s segments
d. It places more emphasis on precision of data than financial accounting does
1. What are fixed costs, if contribution margin is positive and breakeven is one unit? Using this cost structure, what is the operating leverage if they sell 2 units?
2. Abel Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 200 units and of Product B is 300 units. Selling price for A is $160/unit and B is $100/unit. There are two activity cost pools, with estimated total costs and expected