{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

MIDTERM EXAM - Concordia University John Molson School of...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Concordia University COMM 305/4 Winter 2004 John Molson School of Business Midterm Examination 1 Question 1 (20 marks) MULTIPLE CHOICE 1. Garry Industries applies manufacturing overhead at the rate of $40 per machine hour. Budgeted machine hours for the current period were anticipated to be 70,000; however, a lengthy strike resulted in actual machine hours being worked of only 55,000. Budgeted and actual manufacturing overhead figures for the year were $2,800,000 and $2,150,000, respectively. On the basis of this information, the company's year-end overhead was: (2 marks) A. overapplied by $50,000. B. underapplied by $50,000 C. overapplied by $600,000 D. underapplied by $600,000 2. Costs incurred at which of the following activity levels should NOT be allocated to products for decision-making purposes? (1 mark) 3. Last year, Ben Company's income under absorption costing was $4,400 lower than its income under variable costing. The company sold 8,000 units during the year, and its variable costs were $8 per unit, of which $3 was variable selling expense. Fixed manufacturing overhead was $1 per unit in beginning inventory under absorption costing. How many units did the company produce during the year? (2 marks)
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon