COMM 305 & ACCO 240
Midterm Exam- Summer 2007
Question 1 (12 Multiple Choice Questions)
Do not answer on the EXAM
; write your answers in the EXAMINATION BOOKLET.
1. Upon which of the following does managerial accounting place considerable weight?
A) Generally accepted accounting principles.
B) The financial history of the entity.
C) Ensuring that all transactions are properly recorded.
D) Detailed segment reports about departments, products, and customers.
2. Selected information about Buehler Corporation's operations at high and at low levels of
Using the high-low method, what is the cost formula for manufacturing overhead?
A) $50,000 per period plus $10 per unit.
B) $50,000 per period plus $21 per unit.
C) $50,000 per period plus $22 per unit.
D) $347,000 per period plus $0.10 per unit.
3. For the current year, Paxman Company incurred $150,000 in actual
manufacturing overhead cost. The Manufacturing Overhead account showed that
overhead was overapplied in the amount of $6,000 for the year. If the
predetermined overhead rate was $8.00 per direct labour hour, how many hours
were worked during the year?
A) 17,750 hours.
B) 18,000 hours.
C) 18,750 hours.
D) 19,500 hours.
4. At a sales level of $300,000, James Company's gross margin is $15,000 less than its
contribution margin, its net income is $50,000, and its total selling and
administrative expenses are $120,000. At this sales level, what is the company's